Health and Me

Ishita Srivastava

Union Budget 2026: FM Nirmala Sitharaman Announces Biopharma Shakti, Medical Tourism. Here Is What Experts Say

During this year's <span>Union Budget</span> presentation, <span>healthcare</span> development took centre stage as Finance Minister <span>Nirmala Sitharaman</span> announced an array of proposals aimed at improving <span>medical tourism</span>, yoga and Ayurvedic medicine exports, and '<span>Biopharma Shakti</span>'. 

<span>Sitharaman</span> began presenting this year's budget by noting: "We’re inspired by three kartavyas, first is to accelerate economic growth by building resilience to global turmoil, second is to make people strong partners in prosperity, sabka saath sabka Vikas is the third kartavya."

<strong>Here is what she proposed for the improvement of healthcare services in the country: </strong>

The Minister started off by suggesting a ₹10,000 crore outlay for Biopharma Shakti to support domestic medication production for the next five years. 

During the session, which mostly focused on the development of Tier 2 and Tier 3 cities, she stated that <span>India</span>’s disease burden has begun increasingly shifting towards non-communicable diseases.

To help combat this, Sitharaman said: "To develop India as a global bio-pharma manufacturing hub, I propose Bio Pharma Shakti with an outlay of ₹10,000 crores over the next 5 years. This will build an ecosystem for domestic productions of biologics and biosimilars.

"For domestic production of biologics and biosimilars, the strategy will include a biopharma-focused network with three new national institutes of pharmaceutical education and research, popularly known as NIPERS, and upgrading seven existing ones. It will also create a network of 1,000 accredited India clinical trials sites. 

"We propose to strengthen the Central Drug Standard Control Organisation to meet global standards and approve timeframes through a dedicated scientific review and specialists."

By encouraging domestic production of biologics and biosimilars, the government aims to make advanced treatments more affordable and accessible for Indian patients.

The government. is yet to reveal which type of drugs will receive priority during production, whether they will be exported and whether new factories will be set up across the nation.

Speaking of how beneficial this can be for the public, Uday Deshmukh, Chairman &amp; Founder CEO of Onco-Life Cancer Centre, exclusively told Healthandme: "This visionary initiative comes at a critical juncture, as India faces a growing burden of chronic and complex diseases such as cancer, diabetes, and autoimmune disorders. 

"The proposed investment over the next five years will significantly strengthen domestic biopharmaceutical research, innovation, and manufacturing, making advanced cancer therapies more accessible and affordable. 

"By accelerating clinical research and precision medicine while reducing import dependence, Biopharma Shakti has the potential to transform cancer care outcomes and build a truly self-reliant healthcare ecosystem for India.”

<h2>Import Duty Decreased On <span rel="noindex">Cancer Drugs</span></h2>

Cancer drugs are medications, including chemotherapy, targeted therapies, and hormone therapies, used to kill cancer cells, slow growth, or relieve symptoms. Some popular medications include Cisplatin, Paclitaxel, Doxorubicin and Pembrolizumab (Keytruda), most of which are imported into India. 

These imported, specialized cancer treatments,  particularly targeted therapies and monoclonal antibodies, often cost thousands, placing a massive financial burden on patients, leading to lifelong debts. 

However, in this year's Union Budget, Sitharaman proposed reducing import duty tax on 17 cancer drugs and seven medicines for rare diseases, which will in turn, help patients seek proper care on a timely basis.

Deshmukh commented: "India is witnessing a steady and alarming rise in cancer cases, where late detection, prolonged treatment and high medicine costs often lead to preventable complications and loss of life. Against this backdrop, the Union Budget’s decision to remove customs duty on 17 cancer drugs and 7 medicines for rare diseases stands out as a truly progressive and patient-first measure. 

"Affordability remains one of the biggest hurdles in cancer care, forcing many families to delay or discontinue treatment. By reducing import duties, this move has the potential to significantly lower the cost of advanced and targeted therapies, making them accessible to a larger section of patients." 

<h2>Increase In Medical Hubs And Institutions</h2>Sitharaman proposed launching a scheme to support states in setting up five regional medical hubs, which will include AYUSH centres and infrastructure for diagnostics and post-care rehabilitation.

In addition, ten new allied health disciplines will help train one lakh professionals, strengthening the healthcare support system across hospitals, wellness centres and medical tourism facilities.

Furthermore, she noted that no mental health institutions have been set up in North India and to boost care, the government will set up centres in Ranchi, Jharkhand and Tezpur, Assam.

Namrata Jain, Psychotherapist and Relationship Expert at Out Aloud commended the government's initiative to improve mental health care and told Healthandme: The focus on mental health alongside <span>Ayurveda</span> and wellness in this budget is a powerful affirmation that holistic wellbeing matters. Now is the time to harmonize our ancient Indian sciences with contemporary mental health frameworks to nurture resilient, compassionate communities.

"It feels deeply reassuring to see mental health, Ayurveda and wellness coming together in this budget. Healing has always been holistic and this is our reminder to blend ancient Indian wisdom with modern, trauma-informed mental health practices to support gentler, deeper, more human wellbeing." 

During her ninth consecutive Union Budget, Sitharam suggested turning India into a 'global medical tourism hub' by supporting states in setting up five regional medical tourism hubs, which are expected to attract international patients, improve healthcare infrastructure and create jobs in allied services.

Pankaj Chandna, Co-Founder, Vaidam Health told this publication: "Union Budget 2026 is pushing medical value tourism from a 'hospital visit” into a full-stack, globally benchmarked care experience. The five regional medical value tourism hubs can standardise patient journeys across diagnostics, treatment, post-care and rehabilitation, while easing pressure on metros by building credible capacity in Tier 2 and Tier 3 cities. 

"What stands out this year is the emphasis on technology as a growth lever, especially AI-enabled diagnostics, clinical decision support, patient coordination, and faster turnaround on care pathways, all of which directly improve international patient confidence and outcomes. The parallel focus on strengthening allied health institutions and expanding training capacity is equally important because world-class infrastructure only works when the workforce is future-ready."

Under Budget 2026-27, 1.5 lakh caregivers will be trained to provide yoga and Ayurveda-based services to improve access to wellness care while also creating large-scale employment opportunities. The proposal reflects the growing demand for traditional and preventive healthcare in India and abroad.

She also proposed setting up new All India Institutes of Ayurveda as part of the government’s push to expand traditional and modern healthcare infrastructure as well as to improve the quality of Ayurveda education and help standardise treatment practices across the country.

"I propose to set up three new All India Institutes of Ayurveda; Upgrade AYUSH pharmacies and drug testing labs and make available more skilled persons; Upgrade the WHO Global Traditional Medicine Centre in Jamnagar," said Sitharaman.

Focusing on the connection between traditional Indian medicine and medical tourism, Sonam Garg Sharma, Founder, Medical Linkers told Healthandme: "As a country, we are increasingly recognised for combining clinical excellence with value-driven care, and healthcare hubs that integrate advanced diagnostics, post-treatment rehabilitation, and AYUSH-led wellness therapies such as yoga and Ayurveda can take that advantage further by offering a truly end-to-end patient journey. 

"This also adds meaningful momentum to India’s medical value tourism story, where outcomes, experience, and continuity of care matter as much as affordability."

<h2>Upgrade In Geriatric And Professional Care</h2>

Lastly, Sitharaman added that institutions for allied health professionals will be upgraded and professionals will be trained in the coming year to cover  geriatric and allied sectors. New AHP institutes will also be set up in the private and government sectors 

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During this year's Union Budget presentation, healthcare development took centre stage as Finance Minister Nirmala Sitharaman announced an array of proposals aimed at improving medical tourism, yoga and Ayurvedic medicine exports, and 'Biopharma Shakti'. Sitharaman began presenting this year's budget by noting: "We’re inspired by three kartavyas, first is to accelerate economic growth by building resilience to global turmoil, second is to make people strong partners in prosperity, sabka saath sabka Vikas is the third kartavya."Here is what she proposed for the improvement of healthcare services in the country: Biopharma ShaktiThe Minister started off by suggesting a ₹10,000 crore outlay for Biopharma Shakti to support domestic medication production for the next five years. During the session, which mostly focused on the development of Tier 2 and Tier 3 cities, she stated that India’s disease burden has begun increasingly shifting towards non-communicable diseases.To help combat this, Sitharaman said: "To develop India as a global bio-pharma manufacturing hub, I propose Bio Pharma Shakti with an outlay of ₹10,000 crores over the next 5 years. This will build an ecosystem for domestic productions of biologics and biosimilars."For domestic production of biologics and biosimilars, the strategy will include a biopharma-focused network with three new national institutes of pharmaceutical education and research, popularly known as NIPERS, and upgrading seven existing ones. It will also create a network of 1,000 accredited India clinical trials sites. "We propose to strengthen the Central Drug Standard Control Organisation to meet global standards and approve timeframes through a dedicated scientific review and specialists."By encouraging domestic production of biologics and biosimilars, the government aims to make advanced treatments more affordable and accessible for Indian patients.The government. is yet to reveal which type of drugs will receive priority during production, whether they will be exported and whether new factories will be set up across the nation.Speaking of how beneficial this can be for the public, Uday Deshmukh, Chairman & Founder CEO of Onco-Life Cancer Centre, exclusively told Healthandme: "This visionary initiative comes at a critical juncture, as India faces a growing burden of chronic and complex diseases such as cancer, diabetes, and autoimmune disorders. "The proposed investment over the next five years will significantly strengthen domestic biopharmaceutical research, innovation, and manufacturing, making advanced cancer therapies more accessible and affordable. "By accelerating clinical research and precision medicine while reducing import dependence, Biopharma Shakti has the potential to transform cancer care outcomes and build a truly self-reliant healthcare ecosystem for India.”Import Duty Decreased On Cancer DrugsCancer drugs are medications, including chemotherapy, targeted therapies, and hormone therapies, used to kill cancer cells, slow growth, or relieve symptoms. Some popular medications include Cisplatin, Paclitaxel, Doxorubicin and Pembrolizumab (Keytruda), most of which are imported into India. These imported, specialized cancer treatments,  particularly targeted therapies and monoclonal antibodies, often cost thousands, placing a massive financial burden on patients, leading to lifelong debts. However, in this year's Union Budget, Sitharaman proposed reducing import duty tax on 17 cancer drugs and seven medicines for rare diseases, which will in turn, help patients seek proper care on a timely basis.Deshmukh commented: "India is witnessing a steady and alarming rise in cancer cases, where late detection, prolonged treatment and high medicine costs often lead to preventable complications and loss of life. Against this backdrop, the Union Budget’s decision to remove customs duty on 17 cancer drugs and 7 medicines for rare diseases stands out as a truly progressive and patient-first measure. "Affordability remains one of the biggest hurdles in cancer care, forcing many families to delay or discontinue treatment. By reducing import duties, this move has the potential to significantly lower the cost of advanced and targeted therapies, making them accessible to a larger section of patients." Increase In Medical Hubs And InstitutionsSitharaman proposed launching a scheme to support states in setting up five regional medical hubs, which will include AYUSH centres and infrastructure for diagnostics and post-care rehabilitation.In addition, ten new allied health disciplines will help train one lakh professionals, strengthening the healthcare support system across hospitals, wellness centres and medical tourism facilities.Furthermore, she noted that no mental health institutions have been set up in North India and to boost care, the government will set up centres in Ranchi, Jharkhand and Tezpur, Assam.Namrata Jain, Psychotherapist and Relationship Expert at Out Aloud commended the government's initiative to improve mental health care and told Healthandme: The focus on mental health alongside Ayurveda and wellness in this budget is a powerful affirmation that holistic wellbeing matters. Now is the time to harmonize our ancient Indian sciences with contemporary mental health frameworks to nurture resilient, compassionate communities."It feels deeply reassuring to see mental health, Ayurveda and wellness coming together in this budget. Healing has always been holistic and this is our reminder to blend ancient Indian wisdom with modern, trauma-informed mental health practices to support gentler, deeper, more human wellbeing." Medical TourismDuring her ninth consecutive Union Budget, Sitharam suggested turning India into a 'global medical tourism hub' by supporting states in setting up five regional medical tourism hubs, which are expected to attract international patients, improve healthcare infrastructure and create jobs in allied services.Pankaj Chandna, Co-Founder, Vaidam Health told this publication: "Union Budget 2026 is pushing medical value tourism from a 'hospital visit” into a full-stack, globally benchmarked care experience. The five regional medical value tourism hubs can standardise patient journeys across diagnostics, treatment, post-care and rehabilitation, while easing pressure on metros by building credible capacity in Tier 2 and Tier 3 cities. "What stands out this year is the emphasis on technology as a growth lever, especially AI-enabled diagnostics, clinical decision support, patient coordination, and faster turnaround on care pathways, all of which directly improve international patient confidence and outcomes. The parallel focus on strengthening allied health institutions and expanding training capacity is equally important because world-class infrastructure only works when the workforce is future-ready."Focus on Yoga And Ayurveda Under Budget 2026-27, 1.5 lakh caregivers will be trained to provide yoga and Ayurveda-based services to improve access to wellness care while also creating large-scale employment opportunities. The proposal reflects the growing demand for traditional and preventive healthcare in India and abroad.She also proposed setting up new All India Institutes of Ayurveda as part of the government’s push to expand traditional and modern healthcare infrastructure as well as to improve the quality of Ayurveda education and help standardise treatment practices across the country."I propose to set up three new All India Institutes of Ayurveda; Upgrade AYUSH pharmacies and drug testing labs and make available more skilled persons; Upgrade the WHO Global Traditional Medicine Centre in Jamnagar," said Sitharaman.Focusing on the connection between traditional Indian medicine and medical tourism, Sonam Garg Sharma, Founder, Medical Linkers told Healthandme: "As a country, we are increasingly recognised for combining clinical excellence with value-driven care, and healthcare hubs that integrate advanced diagnostics, post-treatment rehabilitation, and AYUSH-led wellness therapies such as yoga and Ayurveda can take that advantage further by offering a truly end-to-end patient journey. "This also adds meaningful momentum to India’s medical value tourism story, where outcomes, experience, and continuity of care matter as much as affordability."Upgrade In Geriatric And Professional CareLastly, Sitharaman added that institutions for allied health professionals will be upgraded and professionals will be trained in the coming year to cover  geriatric and allied sectors. New AHP institutes will also be set up in the private and government sectors 