New Delhi: Union Finance Minister Nirmala Sitharaman, in her ninth consecutive Budget speech, has earmarked ₹1,05,530.42 crore for the development, maintenance, and enhancement of India’s healthcare system in FY2026–27. This represents an 8.96 per cent increase over the Revised Estimates of FY2025–26, marking a historic milestone as public health spending crosses the ₹1 lakh crore threshold for the first time.
Over the past 12 years, cumulative growth in health spending has exceeded 176 per cent, reflecting the government’s sustained focus on infrastructure, human resources, research, and innovation. The scheme component under the Ministry of Health & Family Welfare has increased by 10.78 per cent, while the non-scheme component has risen by 6.32 per cent, strengthening operational capacities across central and state healthcare institutions.
The Budget provides allocation for the Pradhan Mantri Jan Arogya Yojana (PM-JAY) has been raised to ₹9,500 crore, aiming to expand beneficiary coverage and strengthen hospital networks. The National Health Mission (NHM) has received ₹39,390 crore, focusing on primary healthcare, maternal and child health, and disease control interventions across states and union territories.
The Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) has been allocated ₹4,770 crore, a 67.66% rise from the previous year, to expand critical care blocks, integrated public health laboratories, and district and sub-district hospitals. The Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) allocation stands at ₹11,307 crore, supporting new AIIMS, existing institutions, and government medical college upgrades.
The National AIDS and STD Control Programme (NACO) has been increased to ₹3,477 crore, with a special focus on blood transfusion services and strengthening national public health systems.
The government has also launched the Biopharma SHAKTI initiative with a ₹10,000 crore outlay over five years to boost domestic production of biologics and biosimilars. This initiative includes the establishment of three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing institutes, aiming to foster research, innovation, and the development of skilled manpower.
A national network of 1,000 accredited clinical trial sites will further strengthen India’s clinical research ecosystem, accelerate innovation, and position the country as a global destination for ethical, high-quality trials. The Central Drugs Standard Control Organisation (CDSCO) will also be strengthened to meet global regulatory standards and reduce drug approval timelines, improving patient access to advanced therapies.
Recognizing the urgent need for skilled personnel, the Budget proposes an expansion of allied health professional education in 10 key disciplines, expected to create 100,000 new professionals over five years through public and private sector participation. In parallel, 1.5 lakh geriatric caregivers will be trained in wellness, yoga, and operation of medical and assistive devices to address the rising long-term care needs of India’s elderly population. Investments in medical education include increased MBBS, postgraduate, super-specialty, and nursing seats, strengthening teaching, clinical training, and research capacity. These measures are aimed at enhancing diagnostics, preventive care, rehabilitation, and continuity of treatment, particularly in underserved regions.
Infrastructure development also receives a major boost, with Trauma and Emergency Care Centres planned in every district hospital, ensuring 24×7 affordable services. In mental health, the Budget provides for the establishment of NIMHANS-2 in North India and upgrades to premier institutions in Ranchi and Tezpur, significantly expanding access to advanced mental healthcare and training. To reduce treatment costs and out-of-pocket expenditure, the Budget proposes a full exemption of customs duty on 17 life-saving cancer drugs and seven rare disease medicines, including personal imports.
Digital health and research are further prioritized, with the Ayushman Bharat Digital Mission receiving ₹350 crore, enabling expansion of digital health records, telemedicine, and integrated hospital information systems. The Department of Health Research has been allocated ₹4,821 crore, a 24% increase, to support medical research, innovation, and AI-enabled healthcare solutions. The Indian Council of Medical Research (ICMR) receives ₹4,000 crore, marking a 26.98% rise, to strengthen research and innovation capacity.
Since 2014, under the Pradhan Mantri Swasthya Suraksha Yojana, 22 new AIIMS have been approved, with 18 fully functional, offering teaching, research, OPD/IPD, emergency, and diagnostic services, dramatically improving tertiary healthcare access in underserved regions. MBBS and nursing seats have more than doubled, and postgraduate and super-specialty seats have increased by 100%, serving over three crore OPD patients and 15 lakh IPD patients in the last three years alone.
