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.
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).
Many health initiatives received increased funding in the current year, with the total budget estimates for 2026-27 surpassing the revised estimates of 2025-26. For instance, the Pradhan Mantri Jan Arogya Yojana (PM-JAY) was allocated 9,500 crore rupees in 2026-27, which is an increase of 500 crore rupees or 5.56% compared to last year’s revised estimates of 9,000 crore rupees. Similarly, the National Health Mission (NHM) saw a rise of approximately 2,290 crore rupees, reaching a total of 39,390 crore rupees, marking a 6.17% increase from the previous year’s revised estimate of 37,100.
The Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was allocated 11,307 crore rupees, reflecting a 3.73% increase from the revised estimate of 10,900 crore rupees. The National AIDS and STD Control Programme received a significant boost of 815.50 crore rupees, which is a 30.64% increase, bringing its total to 3,477 crore rupees. Blood Transfusion Services were allocated 275 crore rupees, an increase of 75 crore rupees or 37.50%.
The Human Resources for Health & Medical Education program received 1,725 crore rupees, up by 95 crore rupees (5.83%), and the Ayushman Bharat Digital Mission was allocated 350 crore rupees, showing a 7.94% increase. The PM-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) saw a substantial rise of 1,925 crore rupees, reaching 4,770 crore rupees, which is a 67.66% increase from the previous estimate of 2,845 crore rupees.
In the non-scheme components, the budget for AIIMS, New Delhi increased by 262.22 crore rupees to 5,500.92 crore rupees, a 5.01% rise. The Central Government Health Scheme and pensioners’ benefits were allocated 8,697.86 crore rupees, an increase of 590.90 crore rupees or 7.29%. Central Hospitals received 4,599.66 crore rupees, up by 392.82 crore rupees (9.34%), and PGIMER, Chandigarh was allocated 2,504.65 crore rupees, an increase of 86.79 crore rupees or 3.59%. Lastly, the Indian Council of Medical Research (ICMR) was allocated 4,000 crore rupees, which is 850 crore rupees more than the previous estimate, representing a 26.98% increase.
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 Initiatives
New 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-2 establishment 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.
