Budget 2026: Healthcare allocation crosses ₹1 trillion for first time
01 Feb 2026

In a major boost to the nation's healthcare sector, the Union Budget for 2026-27 has allocated ₹1,04,599 crore. This is the first time that India's healthcare budget has crossed the ₹1 lakh crore mark.

The allocation is aimed at strengthening and modernizing hospitals across the country, as well as training more health workers to fill gaps in India's medical system.

Medical tourism hubs to be set up
Expansion plans

The budget also proposes the establishment of five new medical tourism hubs in partnership with private players. The private sector partners include Apollo, Max, Fortis, Dr Lal Pathlabs, and Metropolis.

Additionally, new institutes for Ayurveda have been proposed along with upgraded drug testing labs to further bolster India's healthcare infrastructure.

Training for healthcare workers
Workforce development

The budget also emphasizes workforce development by proposing to train one lakh allied health professionals and 1.5 lakh caregivers. This is especially important given India's aging population.

The Finance Minister also announced plans to upgrade existing institutions for allied health professionals and create a robust care system covering geriatric services, further strengthening the country's healthcare workforce.

Upgradation of Ayush pharmacies and drug testing labs
Infrastructure improvement

The budget also proposes the upgradation of Ayush pharmacies and drug testing labs.

The WHO Traditional Medicine Centre at Jamnagar in Gujarat is also set to be upgraded.

The budget also proposes a 50% increase in capacity at district hospitals by establishing emergency and trauma care centers.

These measures are part of a larger plan to improve India's healthcare infrastructure and make it more accessible for the general public.