Budget 2026-27 Boosts Biopharma, Ayurveda and Medical Tourism
Budget 2026 allocates ₹10,000 crore for biopharma, announces five medical hubs, and expands Ayurveda institutes.
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The Union Budget 2026, presented on 1 February 2026, introduced a ₹10,000 crore outlay for the biopharma sector over five years, aiming to strengthen domestic manufacturing of biologics and biosimilars. The budget also announced the establishment of five regional medical hubs to promote medical tourism and the creation of three new All India Institutes of Ayurveda. These measures are designed to enhance healthcare infrastructure, research, and traditional medicine capacity across India.
According to Hindustan Times, the Biopharma SHAKTI initiative will focus on building a robust ecosystem for the production of biologics and biosimilars, with the goal of positioning India as a global biopharma manufacturing hub. The plan includes the establishment of three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing institutes, alongside a network of over 1,000 accredited clinical trial sites nationwide.
As reported by The News Minute, the five proposed medical hubs will integrate Ayush centres, diagnostic infrastructure, and post-care rehabilitation services. These hubs are expected to generate diverse employment opportunities for medical professionals and support staff. The budget also provides for the upgradation of Ayush pharmacies and drug testing laboratories, as well as the enhancement of the WHO Traditional Medicine Centre in Jamnagar, Gujarat, to strengthen evidence-based research in traditional medicine.
As highlighted by The Indian Express, the government’s focus extends to expanding training capacity in pharmaceuticals, allied health professions, and traditional medicine. The budget outlines the training of one lakh allied health professionals over five years and the creation of a strong geriatric and long-term care ecosystem. The three new All India Institutes of Ayurveda are intended to meet global demand for Ayurveda and increase the pool of skilled personnel in the sector.
“To promote India as a medical tourism hub, I propose a scheme to support states to set up five regional hubs in the country,” Finance Minister Nirmala Sitharaman stated, as cited in multiple sources.
Details provided indicate that these medical hubs will function as integrated healthcare complexes, combining medical, educational, and research facilities. The Biopharma SHAKTI programme’s ₹10,000 crore allocation is expected to facilitate domestic production, reduce import dependence, and make advanced therapies more affordable for Indian patients.
The budget speech confirmed that the Biopharma SHAKTI strategy will also strengthen the Central Drugs Standard Control Organisation by introducing a dedicated scientific review cadre and specialists to meet global standards and approval timelines. The government’s broader industrial growth strategy includes expanding manufacturing capacity in healthcare, advanced technologies, and other strategic sectors.
Further coverage revealed that the budget proposes the upgradation of Ayush pharmacies, drug testing labs, and the WHO Global Traditional Medicine Centre at Jamnagar. The government will also support the training of multi-skilled caregivers, including wellness and yoga practitioners, to build a comprehensive care system for geriatric and allied sectors.
“A strong care system covering geriatric and allied sectors will also be built,” the Finance Minister said, highlighting the government’s commitment to holistic healthcare and traditional medicine.
In addition, analysis showed that the government’s approach integrates medical education, research, and service delivery, aiming to create structured career pathways and employment opportunities in health and care services. The expansion of NIPERs and the establishment of new Ayurveda institutes are expected to address skill shortages and support India’s ambition to become a leader in both modern and traditional healthcare sectors.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.