**Executive Summary**
The Union Budget 2026–27 outlines a strategic roadmap for "Viksit Bharat 2047," increasing the Ministry of Health and Family Welfare’s allocation by 10% to Rs. 1,06,530.42 crore. Key priorities include expanding universal health coverage, strengthening the healthcare workforce with 100,000 new allied professionals, and providing 100% customs duty exemptions on 17 cancer drugs. The budget emphasizes infrastructure development, mental health services, and the global positioning of traditional AYUSH medicine through scientific validation and new institutional establishments.
**Key Points / Main Content**
**Financial Allocations and Scheme Funding**
* **MoHFW Budget:** Increased to Rs. 1,06,530.42 crore, representing a 194% rise over 12 years.
* **Department of Health Research:** Allocated Rs. 4,821.21 crore to foster medical research innovation.
* **National Health Mission (NHM):** Allocation increased by 6.17% to Rs. 39,390 crore.
* **PM-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM):** Received a significant 67.66% increase to Rs. 4,770 crore.
* **Ayushman Bharat PM-JAY:** Funding rose to Rs. 9,500 crore to support health insurance for over 12 crore families.
* **ICMR:** Allocation increased by 26.98% to Rs. 4,000 crore.
**Workforce Development and Training**
* **Allied Health Professionals (AHPs):** Target to train 100,000 AHPs over the next five years across 10 disciplines, including optometry, radiology, and psychology.
* **Caregiver Training:** Target to train 1.5 lakh caregivers within five years.
* **Institutional Upgrades:** Focus on upgrading existing AHP institutions and establishing new ones through public-private partnerships.
**Disease Control and Specialized Care**
* **Cancer Treatment:** 100% customs duty exemption granted for 17 new cancer drugs.
* **Non-Communicable Diseases (NCDs):** Strategic focus on cardiovascular diseases, diabetes, and obesity, which account for 57% of deaths in India.
* **Mental Health:** Establishment of a second National Institute of Mental Health and Neurosciences (NIMHANS-2) in North India and upgrades for institutes in Ranchi and Tezpur.
**AYUSH and Medical Tourism**
* **Ayurveda Expansion:** Establishment of three new All India Institutes of Ayurveda to meet global demand.
* **Global Leadership:** Upgrading the WHO Global Traditional Medicine Centre in Jamnagar and enhancing AYUSH pharmacy certification standards.
* **Medical Value Tourism:** Establishment of five Regional Medical Hubs integrating modern diagnostics with AYUSH centers to attract international patients.
**Impact Analysis**
**Patients and Vulnerable Populations**
**Impact**
Eligible households benefit from affordable healthcare through the Rs. 5 lakh annual insurance coverage under AB-PMJAY. Cancer patients gain from reduced costs of essential medications due to customs duty exemptions.
**Action Required**
Eligible families should ensure enrollment in the Ayushman Bharat scheme and utilize the network of 1,84,317 Ayushman Arogya Mandirs for preventive care and NCD screenings.
**Healthcare Professionals and Students**
**Impact**
Youth and healthcare workers have expanded opportunities for specialized training and employment in allied health, caregiving, and AYUSH processing.
**Action Required**
Prospective students and professionals should seek enrollment in the new and upgraded training programs across the 10 identified allied health disciplines.
**AYUSH Sector Stakeholders**
**Impact**
Traditional medicine practitioners and medicinal plant farmers benefit from the transition of AYUSH into a scientifically validated, globally recognized health system and increased export opportunities.
**Action Required**
Practitioners and manufacturers must adhere to higher certification standards and evidence-based research protocols to align with global market requirements.
**Research and Academic Institutions**
**Impact**
Institutions like ICMR and AIIMS receive higher budgetary support to drive medical innovation and infrastructure expansion.
**Action Required**
Research bodies must utilize increased outlays (e.g., the Rs. 10,000 crore outlay over 5 years for NCD-related production) to advance biopharma and medical technology.
Key Entities Referenced
Ministry of Health and Family Welfare: The primary government body responsible for India's health policy, receiving a 10% budgetary increase to Rs. 1,06,530.42 crore for 2026-27.
Pradhan Mantri Jan Arogya Yojana (PM-JAY): A flagship health insurance scheme providing up to Rs. 5 lakhs annually per household to over 12 crore vulnerable families.
National Health Mission (NHM): The major central program for public health delivery and infrastructure, receiving the largest scheme-specific allocation of Rs. 39,390 crore.
PM-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM): A mission focused on strengthening healthcare systems and infrastructure that received a significant 67.66% increase in funding.
National Programme for Prevention and Control of Non-Communicable Diseases (NP-NCD): A government initiative to systematically identify and treat high-risk individuals for cardiovascular diseases, diabetes, and cancers.
PIB Headquarters
Prioritising Healthcare for a Viksit Bharat 2047
Budget 2026-27 Series
Posted On: 30 MAR 2026 3:51PM by PIB Delhi
Key Takeaways
The Union Budget 2026–27 has increased allocation for the Ministry of Health and Family Welfare by
10%, to Rs. 1,06,530.42 crore from the revised estimates of 2025–26.
100% customs duty exemption on 17 new cancer drugs
Union Budget 2026-27 targets training 100,000 allied health professionals and 1.5 lakh caregivers over the
next five years
Budget proposed establishing three new All India Institutes of Ayurveda to meet growing global demand
and upgrade the WHO Global Traditional Medicine Centre in Jamnagar.
Introduction
India's healthcare landscape is undergoing a transformative phase. The Union Budget 2026-27, driven by
the insights of the Economic Survey 2025-26, has established a comprehensive roadmap for universal
health coverage through infrastructure development, preventive care, and digital integration, focusing on
youth, underprivileged, and elderly populations. The budget prioritises non-communicable diseases
(NCDs) while strengthening traditional medicine, mental health services, and the biopharma sector.
The Ministry of Health and Family Welfare has been allocated Rs. 1,06,530.42 crore—a 10% increase
from FY 2025-26 and 194% rise over 12 years. The Department of Health Research has been allocated Rs.
4,821.21 crore. This rising government expenditure demonstrates strong commitment toward universal
healthcare and medical research innovation.
Budget 2026-27 Healthcare-Related Announcements
The Ministry of Health and Family Welfare’s budgetary allocation increased from last year’s revised
estimates, following the decade-old trend of rising health funding.Many health initiatives were allocated more funds this year (in crore rupees).
Scheme/Program Budget Revised Increase %
Estimates 2026- Estimates 2025- Increase
27 26
CENTRAL SECTOR SCHEMES
Pradhan Mantri Jan Arogya Yojana 9,500.00 9,000.00 500.00 5.56%
(PM-JAY)
National Health Mission (NHM) 39,390.00 37,100.07 2,289.93 6.17%
Pradhan Mantri Swasthya Suraksha 11,307.00 10,900.00 407.00 3.73%
Yojana (PMSSY)
National AIDS and STD Control 3,477.00 2,661.50 815.50 30.64%
Programme
Blood Transfusion Services 275.00 200.00 75.00 37.50%
Human Resources for Health & 1,725.00 1,630.00 95.00 5.83%
Medical Education
Ayushman Bharat Digital Mission 350.00 324.26 25.74 7.94%PM-Ayushman Bharat Health 4,770.00 2,845.00 1,925.00 67.66%
Infrastructure Mission (PM-
ABHIM)
NON-SCHEME COMPONENT
AIIMS, New Delhi 5,500.92 5,238.70 262.22 5.01%
Central Government Health Scheme 8,697.86 8,106.96 590.90 7.29%
& Pensioners' Benefits
Central Hospitals 4,599.66 4,206.84 392.82 9.34%
PGIMER, Chandigarh 2,504.65 2,417.86 86.79 3.59%
Indian Council of Medical Research 4,000.00 3,150.50 850.00 26.98%
(ICMR)
Funding for the Ayushman Bharat Pradhan Mantri-Jan Arogya Yojana (AB-PMJAY), launched in 2018,
has been steadily rising. As the world's largest public healthcare scheme, it provides health insurance of up
to Rs. 5 lakhs annually per eligible household, making quality healthcare affordable for over 12 crore
vulnerable families. Funding for other schemes has also increased over the decade, responding to India's
evolving health landscape and demand for stronger healthcare infrastructure.
Budget 2026-27: New InitiativesNew initiatives and schemes announced in the Union Budget 2026-27 focus on India’s healthcare
challenges while aiming to train a greater number of healthcare professionals.Rise of Non-Communicable Diseases
The recently released Economic Survey 2025-26 highlights a critical shift in India’s health landscape.
While the nation has achieved significant progress in tackling maternal and child health and increasing life
expectancy from 49.7 years in 1973 to 70.3 years in 2023, it now faces a rising health challenge: Non-
communicable diseases (NCDs) such as cardiovascular diseases, diabetes, obesity and cancers. NCDs
accounted for 57% of deaths in the country in 2021-23.
The Government of India runs the National Programme for Prevention and Control of Non-Communicable
Diseases to systematically identify high-risk individuals and link them to appropriate care and treatment.
Over the years, the funds approved for State Programme Implementation Plans have increased:AYUSH and Traditional Medicine: From Civilisational Knowledge to a Global Health System
Global Recognition and Strategic Context
India's traditional knowledge systems have evolved into globally recognised health frameworks. Post-
COVID, demand for preventive care has driven wider acceptance of the already popular Ayurveda and
AYUSH systems. The Union Budget 2026-27 positions AYUSH as a contemporary health, wellness, and
economic opportunity, benefiting farmers cultivating medicinal plants and youth in processing, thereby
advancing public health, rural incomes, and India's global soft power.Budget 2026–27: Building the Future of AYUSH and Traditional Medicine
The Union Budget 2026-27 marks a decisive transition for AYUSH from expansion to consolidation,
quality enhancement, and global leadership, transforming it from practice-based systems into scientifically
validated global health disciplines. The strategic initiatives aim to strengthen education, clinical training,
and research capacity for both domestic healthcare delivery and international engagement, while raising
regulatory standards and certification ecosystems to position Indian AYUSH products in global markets
that demand scientifically validated solutions. By deciding to upgrade the WHO Global Traditional
Medicine Centre at Jamnagar, India positions itself as a global hub for evidence-based research, training,
and international awareness, anchoring traditional systems within global research and knowledge
frameworks. The integration of AYUSH Centres into Regional Medical Hubs embeds traditional medicine
into India's medical value tourism offerings alongside modern diagnostics, treatment, and rehabilitation
services. This will ultimately lead to AYUSH evolving to meet rising global demands through scientific
validation, quality assurance, and seamless integration with modern healthcare delivery systems.
Conclusion
The Union Budget 2026–27 has accorded significant priority to the health sector, with a substantial
increase in allocations for the Ministry of Health and Family Welfare, reflecting the Government’s
continued commitment to strengthening India’s healthcare system and ensuring universal access to quality
medical services. Key commitments include expanded allied health workforce, addressing immediate
clinical needs and long-term economic goals. Initiatives span global AYUSH integration, NIMHANS-2establishment in North India, and investments in infrastructure, nutrition, and emergency care. All this
ensures India's demographic dividend is supported by a healthy, skilled, and resilient population, thereby
positioning healthcare as a fundamental pillar for Viksit Bharat by 2047.
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