Health Sector Budget 2026: Finance Minister Nirmala Sitharaman in her 9th consecutive budget has focused more on the Health and Bio-pharma sector. Calling it a driver of economic growth, domestic manufacturing, advanced technology, and long-term capacity building have taken the centre stage in this year’s Union Budget 2026. With Bio Pharma Shakti initiative, the govt aims to develop India as a global biopharma manufacturing hub by building a strong ecosystem for the domestic production of biologics and biosimilars. By encouraging domestic production of biologics and biosimilars, the government aims to make advanced treatments more affordable and accessible for Indian patients.
To develop India as a global Biopharma manufacturing hub, FM Smt. @nsitharaman proposed the Biopharma SHAKTI with an outlay of ₹ 10,000 crores over the next 5 years. This will build the ecosystem for domestic production of biologics and biosimilars.#ViksitBharatBudget pic.twitter.com/f7WsGoUY2a
— Ministry of Finance (@FinMinIndia) February 1, 2026
Health Sector Budget Announcement: Rs 10,000 crore allocated to Bio Pharma Shakti initiative
The Government has proposed Biopharma SHAKTI, a strategy to scale up manufacturing in seven strategic sectors and position India as a global biopharma hub. With India’s disease burden shifting toward non-communicable diseases, biologics and biosimilars will play a key role in affordable, quality healthcare. Announced by Finance Minister Nirmala Sitharaman, the initiative includes an outlay of ₹10,000 crore over five years to strengthen domestic production, upgrade NIPER institutions, create 1,000 accredited clinical trial sites, and enhance CDSCO capacity to meet global regulatory standards and speed up approvals.
Health Sector Budget 2026 Live Updates: AHPIs to be upgraded; 1.5 lakh professionals to be added in 5 yrs
Finance Minister Nirmala Sitharaman, presenting the ninth Budget of the PM Narendra Modi-led NDA government, said that existing institutions for allied health professionals will be upgraded and new AHPI institutions will be established in both the public and private sectors. These will cover 10 selected disciplines, including optometry, radiology, anesthesia, OT technology, applied psychology, and behavioral health, and will add 1 lakh allied health professionals over the next five years.
To create a new range of skilled career pathways for our youth, Union Finance Minister Smt. @nsitharaman proposed interventions in the following sectors:
👉 Allied Health Professionals (AHPs)
👉Care Ecosystem
👉Hubs for Medical Value Tourism
👉 Set up a NIMHANS-2
👉Strengthen… pic.twitter.com/7msZCgMrui— Ministry of Finance (@FinMinIndia) February 1, 2026
FM Sitharaman: Govt to Set Up 5 Medical Value Tourism Hubs
The government plans to develop Medical Value Tourism (MVT) hubs to position India as a global medical tourism destination. A new scheme will support states in establishing five regional hubs in partnership with the private sector. These integrated healthcare complexes will combine medical services, education, and research, and will include AYUSH centres, MVT facilitation units, and facilities for diagnostics, post-treatment care, and rehabilitation. The hubs are also expected to generate significant employment opportunities for doctors and allied health professionals.
