The Union Budget 2026–27 places healthcare and life sciences among its priority areas, with measures spanning biopharmaceutical manufacturing, medical education, cancer care, digital health and medical value tourism. Industry stakeholders say the announcements indicate a policy intent to strengthen domestic capacity, expand access beyond major cities and align healthcare growth with broader economic objectives.
A key proposal is the ₹10,000-crore Biopharma Shakti initiative, aimed at accelerating domestic production of biologics and biosimilars. Hospital leaders and healthcare executives view this as an attempt to address the growing burden of non-communicable diseases and reduce reliance on imports.
Dr. Ranjit Ghuliani, Medical Superintendent at NIIMS Hospital, described the programme as a significant intervention for India’s life sciences sector. “The proposed ‘Biopharma Shakti’ program of ₹10,000 crore is a historic move that will help India position itself to become a world leader in the development of biologics and biosimilars,” he said, adding that the Budget also acknowledges challenges such as diagnostic delays, uneven access to care and workforce gaps.
Similar views were echoed by Dr. Kousar Shah, Group CEO of ShardaCare-Healthcity, who noted that biologics are increasingly critical in managing chronic diseases such as cancer, diabetes and autoimmune disorders. He also highlighted customs duty exemptions on select cancer medicines and the expansion of rare disease coverage as measures that could influence affordability and patient access.
Cancer care received specific attention in the Budget through proposals for day-care cancer centres, expanded medical education and preventive healthcare initiatives. Dr. Sanket Mehta, Founder and Director of SSO Cancer Care Hospital, said the measures could support earlier diagnosis and improve treatment outcomes, particularly outside metropolitan centres.
Beyond pharmaceuticals, the Budget outlines plans to establish five hubs for Medical Value Tourism in partnership with the private sector, alongside integrated regional medical hubs offering diagnostics, post-care and AYUSH services. Varun Khanna, Group Managing Director of Quality Care India Ltd, said such initiatives, along with investments in allied health education and training of 1.5 lakh multi-skilled caregivers, could strengthen the care ecosystem, including geriatric and allied services.
The Budget also proposes setting up new institutions for allied health professionals and expanding training capacity, reflecting concerns around workforce availability. Measures related to mental health infrastructure, including the proposed NIMHANS-2 and upgrades to mental health institutions, were highlighted by healthcare leaders as steps towards addressing regional care gaps.
Technology and prevention feature prominently across healthcare and life sciences announcements. Masaharu Morita, Founder and Program Director at NURA – AI Health Screening Centre, pointed to the Budget’s emphasis on AI integration across healthcare, education and research. He said the approach signals a shift from episodic care to long-term health management, with early screening, diagnostics and clinical research gaining prominence.
Overall, the healthcare-related provisions in Union Budget 2026–27 reflect an effort to link health outcomes with industrial development, workforce expansion and technology adoption, with implementation and execution expected to determine their eventual impact.
