Experts are largely applauding the health sector initiatives outlined in Budget 2026, particularly the focus on biopharmaceuticals, enhanced district-level healthcare, and increased affordability of treatments. The budget signals a significant policy shift, recognizing healthcare as a vital engine for economic growth.
A major highlight of the budget is the "Biopharma Shakti" initiative, with a proposed investment of ₹10,000 crore over the next five years. This program aims to establish India as a global hub for biopharmaceutical manufacturing, focusing on boosting the domestic production of biologics and biosimilars. The initiative is expected to deepen scientific expertise within the pharmaceutical sector by strengthening National Institutes of Pharmaceutical Education and Research (NIPERs), expanding clinical trials, and enabling faster, science-based regulation. The government plans to establish three new NIPERs, bringing the total to ten, while upgrading the seven existing ones to enhance industry linkages and research capabilities. This move is expected to provide a steady stream of skilled talent, bolstering the high-potent API portfolio.
Union Finance Minister Nirmala Sitharaman emphasized the importance of biological medicines in improving longevity and quality of life at affordable costs, addressing the increasing prevalence of non-communicable diseases like diabetes, cancer, and autoimmune disorders. In line with this, the budget proposes the exemption of basic customs duty on 17 essential drugs, offering relief to patients, especially those battling cancer. The inclusion of seven more rare diseases for personal import exemptions further eases patient access to necessary treatments. These measures aim to reduce treatment costs, improve access to advanced therapies, and support patients facing life-threatening illnesses.
The budget also demonstrates a commitment to strengthening healthcare access at the district level. A key proposal involves a 50% expansion of emergency and trauma care capacity in district hospitals across the country. This expansion is intended to reduce excessive expenditure during medical emergencies. Furthermore, the budget includes a scheme to support states in establishing five regional medical hubs, integrating medical services, education, and research facilities into cohesive healthcare complexes.
Mental health received significant attention in Budget 2026. The establishment of NIMHANS 2.0, a national institute for mental healthcare in North India, is a major step towards addressing the lack of premier mental health institutions in the region. The budget also aims to upgrade National Mental Health Institutes in Ranchi and Tezpur into regional apex institutions. This focus on mental well-being includes the expansion of digital counseling services, strengthened referral systems, and greater integration with primary healthcare.
The Union Budget 2026 allocates ₹1,06,530.42 crore to the Ministry of Health and Family Welfare, marking a nearly 10% increase over the revised estimates of the previous year. The Department of Health Research receives ₹4,821.21 crore, a 26% increase from last year. This enhanced outlay underscores the government's focus on healthcare infrastructure development, service delivery, medical education, research, and innovation.
While experts have generally welcomed the budget's provisions, some express concern that the emphasis on biopharma may overshadow primary care. There are concerns that rural maternal care, tuberculosis follow-up, hypertension and diabetes management at the community level, and child immunization programs may receive limited attention. Others point out that despite increased healthcare spending, public healthcare utilization remains a challenge due to persistent gaps in staffing and quality.