New Delhi: The Union Budget 2026-27 has proposed Biopharma SHAKTI – Strategy for Healthcare Advancement Through Knowledge, Technology and Innovation – to strengthen India’s healthcare and life sciences ecosystem and establish the country as a global biopharma manufacturing hub.
Presenting the Budget in Parliament, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman stated that health is a central pillar across the government’s three Kartavyas: accelerating economic growth, building population capacity, and ensuring equitable access to resources for all regions and sectors.
Under Biopharma SHAKTI, the government has proposed an outlay of ₹10,000 crore over the next five years to build a robust ecosystem for domestic production of biologics and biosimilars, supporting innovation, research, and advanced manufacturing capabilities in the biopharmaceutical sector.
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Biopharma SHAKTI to Strengthen Skilled Healthcare Workforce and Allied Health Education
As part of broader health-sector interventions aligned with Biopharma SHAKTI, the Union Budget announced significant measures to expand skilled career pathways for youth and healthcare professionals.
Existing institutions for Allied Health Professionals (AHPs) will be upgraded, and new AHP institutions will be established across both government and private sectors.
These initiatives will cover 10 selected disciplines, including optometry, radiology, anaesthesia, OT technology, applied psychology, and behavioural health. The government aims to add 100,000 new AHPs over the next five years.
Biopharma SHAKTI Aligned Care Ecosystem to Focus on Geriatric and Allied Care Services
In line with the objectives of Biopharma SHAKTI, the Budget also proposes the development of a strong care ecosystem for geriatric and allied care services.
NSQF-aligned programmes will be introduced to train multi-skilled caregivers by combining core care capabilities with allied skills such as wellness, yoga, and operation of medical and assistive devices.
The Finance Minister announced that 1.5 lakh caregivers will be trained in the coming years to support India’s growing healthcare and ageing population needs.
Biopharma SHAKTI Supports Regional Medical Hubs and Medical Tourism
To promote India as a global destination for medical tourism, the Union Budget proposed a scheme to support states in establishing five Regional Medical Hubs in partnership with the private sector, complementing the objectives of Biopharma SHAKTI.
These hubs will function as integrated healthcare complexes with medical, educational, and research facilities, including AYUSH centres, Medical Value Tourism Facilitation Centres, and infrastructure for diagnostics, post-care, and rehabilitation.
The hubs are expected to generate diverse employment opportunities for doctors and allied health professionals.
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AYUSH, Traditional Medicine and Research Infrastructure Expansion
The Finance Minister highlighted the growing global acceptance of Ayurveda and yoga and announced several initiatives to meet rising demand.
The Budget proposes the establishment of three new All India Institutes of Ayurveda, upgradation of AYUSH pharmacies and drug testing laboratories to enhance certification standards, and strengthening of skilled manpower.
Additionally, the WHO Global Traditional Medicine Centre in Jamnagar will be upgraded to enhance evidence-based research, training, and awareness in traditional medicine systems.
Mental Health and Emergency Care Infrastructure to Be Strengthened
Addressing gaps in mental healthcare infrastructure, the Union Budget announced the establishment of a NIMHANS-2 and the upgradation of National Mental Health Institutes in Ranchi and Tezpur as Regional Apex Institutions.
Further, emergency and trauma care centres will be established to increase the emergency capacity of district hospitals by 50%, strengthening healthcare response capabilities nationwide.
Commenting on the announcement, Parth Amin, CEO & Co-Founder, Decode Age, said:
“The Union Budget 2026-27 is a definitive signal that India is ready to lead the longevity revolution. With the launch of the Biopharma SHAKTI scheme, the government has provided a ₹10,000 crore commitment to the science of biologics and precision medicine. This creates the ecosystem needed for companies to scale advanced healthcare innovations and shift from disease management to preventive, data-led healthcare.”
Promoting Medical Tourism and Cutting Duties on Cancer Drugs Welcome Initiatives
Dr Divij Mane, Director, Noble Hospitals and Noble Research Centre said, “The scheme to establish five regional medical hubs will boost medical tourism, create jobs across healthcare services, and strengthen research under the Biopharma SHAKTI Scheme. Duty cuts on 17 cancer drugs will also provide much-needed relief to patients, reflecting the Budget’s strong focus on healthcare.”
“The Budget’s focus on mental healthcare through new national institutions is a strong step toward improving care, training and research,” said Abhineet Kumar, CEO & Founder, Rocket Health. “The push for pharma manufacturing and expansion of medical seats will also help address doctor shortages and strengthen India’s healthcare ecosystem.”
