From Cancer Relief To Biopharma Ambition, Budget 2026 Delivers Major Health Boost

Major relief for patients with cancer and rare diseases through the waiver of basic customs duty on 17 essential drugs; the launch of Biopharma Shakti, a Rs 10,000-crore initiative to position India as a global biopharmaceutical hub; and the proposal to establish NIMHANS-2 to expand advanced neurological and mental health services are among the key health sector announcements in the Union Budget 2026–27 presented by Finance Minister Nirmala Sitharaman on Sunday in Parliament.

Placing healthcare as a central pillar of the government’s development agenda in her Budget speech, the Finance Minister said the government is guided by three Kartavyas: to accelerate and sustain economic growth, to fulfil aspirations and build the capacity of the population, and to ensure equitable access to resources for every family, community, region, and sector.

With global demand for biologics rising rapidly, the government’s move to launch the Biopharma Shakti programme aims to develop India as a global biopharma manufacturing hub by building a strong ecosystem for the domestic production of biologics and biosimilars. This is also expected to support research, innovation, and skilled employment in the life sciences sector, aiming to position India as a competitive player in the international pharmaceutical market.

Announcing the launch of the Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology, and Innovation), she also pointed out that, “India’s disease burden is observed to be shifting towards non-communicable diseases, like diabetes, cancer and autoimmune disorders. Biologic medicines are key to longevity and quality of life at affordable costs. To develop India as a global Biopharma manufacturing hub, I propose the Biopharma SHAKTI with an outlay of Rs 10,000 crores over the next 5 years. This will build the ecosystem for domestic production of biologics and biosimilars. The Strategy will include a Biopharma-focused network with 3 new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading 7 existing ones. It will also create a network of over 1000 accredited India Clinical Trials sites. We propose to strengthen the Central Drugs Standard Control Organisation to meet global standards and approval timeframes through a dedicated scientific review cadre and specialists.”

To ease the financial burden on cancer patients, the Finance Minister announced the waiver of basic customs duty on 17 critical drugs and medicines—a move expected to significantly improve affordability and access to life-saving treatments.

In addition to cancer therapies, the government will extend import duty exemptions for medicines, drugs, and specialised medical foods brought in personally for the treatment of seven additional rare diseases, she added.

“To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines.”

She further said, “I also propose to add 7 more rare diseases for the purposes of exempting import duties on personal imports of drugs, medicines and Food for Special Medical Purposes (FSMP) used in their treatment.”

At the same time, the Finance Minister also noted that, “There are no national institutes for mental healthcare in north India. We will therefore set up a NIMHANS-2 and also upgrade National Mental Health Institutes in Ranchi and Tezpur as Regional Apex Institutions.”

Also, she said, emergencies expose families, particularly the poor and vulnerable, to unexpected expenditure. “We will strengthen and increase these capacities by 50% in District Hospitals by establishing Emergency and Trauma Care Centres.”

Experts say the proposal to establish NIMHANS-2 will further strengthen India’s capacity in advanced neurological and mental healthcare, addressing growing demand for specialised services.

The Finance Minister, in her speech, also noted that ancient Indian yoga, already respected in several parts of the world, was given mass global recognition when Prime Minister Narendra Modi took it to the United Nations. “Further, post-COVID, Ayurveda gained a similar global acceptance and recognition. To meet this growing global demand, a few more steps were announced.”

The Finance Minister proposed to set up three new All India Institutes of Ayurveda; upgrade AYUSH pharmacies and Drug Testing Labs for higher standards of certification ecosystem; and make available more skilled personnel while upgrading the WHO Global Traditional Medicine Centre in Jamnagar to bolster evidence-based research, training, and awareness for traditional medicine.

Yet another important announcement was a move aimed at the creation of a new range of skilled career pathways for the youth. She proposed interventions in multiple sectors, including the health sector.

Existing institutions for Allied Health Professionals (AHPs) will be upgraded and new AHP institutions established in private and government sectors. This will cover 10 selected disciplines, including optometry, radiology, anesthesia, OT Technology, Applied Psychology, and Behavioural Health, and the addition of 100,000 AHPs over the next five years.

The Finance Minister in her speech also stated that a strong Care Ecosystem, covering geriatric and allied care services, will be built. A variety of NSQF-aligned programmes will be developed to train multi-skilled caregivers combining core care and allied skills, such as wellness, yoga, and the operation of medical and assistive devices. Further, in the coming year, 1.5 lakh caregivers will be trained, she said.

To promote India as a hub for medical tourism services, the Union Budget proposes to launch a scheme to support states in establishing five Regional Medical Hubs in partnership with the private sector. These hubs will serve as integrated healthcare complexes that combine medical, educational, and research facilities. They will have AYUSH Centres, Medical Value Tourism Facilitation Centres, and infrastructure for diagnostics, post-care, and rehabilitation. These hubs will provide diverse job opportunities for health professionals, including doctors and AHPs.