The Union Budget 2026–27 places healthcare and biopharma manufacturing firmly at the centre of India’s growth strategy, signalling the government’s intent to build a globally competitive and integrated care ecosystem.
A key highlight of the budget is the launch of ‘Biopharma Shakti’, a ₹10,000-crore initiative spread over five years to strengthen domestic capabilities in biologics and biosimilars manufacturing. The programme aims to reduce import dependence while positioning India as a global hub for advanced biopharmaceuticals.
The budget also proposes a stronger foundation for research and regulation, including the creation of a nationwide network of around 1,000 accredited clinical trial sites, upgrades to National Institutes of Pharmaceutical Education and Research (NIPERs), and enhanced capacity at the Central Drugs Standard Control Organisation (CDSCO) to meet global standards.
Recognising the need for skilled manpower, Budget 2026 outlines plans to expand allied healthcare education and training, with a target to develop nearly 1.5 lakh healthcare professionals and caregivers over the next five years. Complementing this effort is a renewed push for Ayurveda and integrative healthcare, with the proposal to establish three new All India Institutes of Ayurveda.
Medical value tourism has emerged as another strategic pillar, with the government planning five regional hubs that integrate hospitals, diagnostics, rehabilitation, and wellness services, aimed at attracting international patients.
Commenting on the budget’s healthcare focus, Aalap Bansal, Partner – Government & Public Services, Industrial & Infrastructure Development Advisory and Lead – Tourism, Sports and Leisure, KPMG in India, said, “Budget 2026–27 firmly establishes India as a high-value global care hub. By focusing on medical tourism, the government recognises healthcare as a dual engine for economic growth and skilled employment. This creates a robust ‘care economy’ corridor, integrating clinical excellence with world-class hospitality to drive sustainable international demand.”
On the affordability front, the budget has announced customs duty waivers on 17 critical drugs, a move expected to help lower treatment costs and improve access. Mental healthcare has also received attention through proposals to expand specialised institutions and services.
Taken together, the healthcare announcements in Budget 2026 reflect a broader ambition to position India as a global leader across advanced medicine, traditional systems, skilled talent, and patient-centric care.
Source: ET HealthWorld
