New Delhi, Feb 1: The Union Budget 2026-27 on Sunday announced a significant expansion in public spending on healthcare, medical research, medical tourism, skilling and heritage-led tourism, underlining the Centreís focus on building resilient health infrastructure while leveraging tourism as a driver of jobs and economic growth.
Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman allocated Rs 1,06,530.42 crore to the Ministry of Health and Family Welfare, marking nearly a 10 percent increase over the Revised Estimates of 2025-26.
She said the health budget has recorded a cumulative growth of over 176 percent in the last 12 years, reflecting the governmentís emphasis on strengthening healthcare infrastructure, expanding access and promoting medical research.
HEALTH INFRASTRUCTURE AND FLAGSHIP SCHEMES
One of the biggest boosts was announced for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), whose allocation has been increased by 67.66 per cent to Rs 4770 crore in Budget Estimates 2026-27.
The enhanced outlay will be used to expand critical care blocks, public health laboratories, and district and sub-district hospitals across the country.
Under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), the allocation has been raised to Rs 11,307 crore, an increase of Rs 407 crore or 3.73 percent over the revised estimates of the previous year.
The funding will support the setting up of new AIIMS, strengthening of existing institutions and upgradation of government medical colleges.
The National AIDS and STD Control Programme has been allocated Rs 3477 crore, registering a 30.64 percent increase. This includes a major boost for blood transfusion services, aimed at strengthening national public health systems.
Boost to research and pharma innovation
Medical research received a major push, with the allocation for the Department of Health Research increased to over Rs 4821 crore, a rise of about 24 percent.
The Indian Council of Medical Research has been allocated Rs 4000 crore, nearly 27 percent higher than last year.
The Budget also announced the launch of ëBio Pharma Shaktií, a Rs 10,000 crore national initiative over five years to promote biologics and biosimilars, strengthen pharmaceutical research and reduce import dependence.
The initiative includes plans to expand NIPER institutions and create a national network of accredited clinical trial sites.
WORKFORCE, REGULATION, PATIENT RELIEF
To meet the growing demand for skilled healthcare professionals, the Budget proposes the creation of allied health institutions and regional medical hubs, along with a phased Rs 980 crore plan over 3 years for allied and healthcare education.
The government also proposed strengthening the drug regulatory framework by enhancing the scientific capacity of the Central Drugs Standard Control Organisation (CDSCO).
For patient relief, customs duty on several cancer and rare disease drugs has been reduced to lower treatment costs and cut out-of-pocket expenditure.
Trauma and emergency care centres are proposed in every district hospital to ensure affordable 24◊7 emergency services.
The Finance Minister said these measures reaffirm the governmentís commitment to building a resilient, inclusive, and future-ready healthcare system aligned with the vision of Viksit Bharat@2047.
MEDICAL TOURISM AND REGIONAL HUBS
Alongside healthcare spending, Sitharaman announced a new scheme to support states in setting up five Regional Medical Hubs in partnership with the private sector to promote India as a global medical tourism destination.
ìThese hubs will be integrated healthcare complexes with medical, education and research facilities,î she said.
They will include AYUSH centres, medical value tourism facilitation centres, and infrastructure for diagnostics, post-treatment care and rehabilitation, and are expected to generate jobs for doctors and allied health professionals.
TOURISM, HOSPITALITY, SKILLING
Highlighting tourism as a major source of jobs and foreign exchange, the Finance Minister announced the setting up of a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology.
The institute will act as a bridge between academia, industry and government.
She also proposed a pilot scheme to upskill 10,000 tourist guides at 20 iconic tourist sites through a standardised 12-week hybrid training programme, in collaboration with an Indian Institute of Management.
A National Destination Digital Knowledge Grid will also be created to digitally document cultural, spiritual and heritage sites across India, generating new job opportunities for local researchers, historians, content creators and technology partners.
ECO-TOURISM AND WILDLIFE INITIATIVES
Noting Indiaís potential for world-class trekking and hiking experiences, Sitharaman announced the development of ecologically sustainable mountain trails in Himachal Pradesh, Uttarakhand, Jammu and Kashmir, the Araku Valley in the Eastern Ghats and Podhigai Malai in the Western Ghats.
Other proposals include turtle trails at key nesting sites in coastal Odisha, Karnataka and Kerala, and bird-watching trails around Pulicat Lake in Andhra Pradesh and Tamil Nadu.
She also referred to the International Big Cat Alliance, launched in 2024, and announced that India will host the first Global Big Cat Summit this year, with participation from heads of government and ministers from 95 big cat range countries.
HERITAGE TOURISM AND REGIONAL FOCUS
Under heritage tourism, the Budget proposes the development of 15 archaeological sites, including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur and Leh Palace, as experiential cultural destinations. Excavated landscapes will be opened to the public through curated walkways, with immersive storytelling and modern technologies used in conservation labs, interpretation centres and guide training.
Focusing on the Purvodaya states, the Finance Minister announced plans for an integrated East Coast Industrial Corridor with a key node at Durgapur, development of five tourism destinations in the five Purvodaya states, and the introduction of 4,000 e-buses.
For the North-Eastern region, a new scheme was announced for the development of Buddhist circuits in Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura, focusing on preservation of temples and monasteries, interpretation centres, improved connectivity and better pilgrim amenities.
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