The Union Budget 2026-27 has placed healthcare at the centre of India’s development agenda. With a record ₹1,06,530.42 crore allocation for the Ministry of Health and Family Welfare, the government has signalled a long-term commitment to affordable, accessible and quality healthcare. Presented in Parliament, the Budget reflects nearly 10% growth over last year and a massive 176% increase over the past 12 years. From hospitals and research to drugs and digital health, healthcare reforms have gained fresh momentum.
Overall Health Budget Push
- The allocation of ₹1,06,530.42 crore to the Ministry of Health and Family Welfare represents a nearly 10% rise over FY 2025-26 revised estimates.
- Compared to FY 2014-15, the health budget has grown cumulatively by over 176%, reflecting sustained policy focus.
- Both scheme and non-scheme components saw increases, supporting infrastructure, institutions and service delivery.
Flagship Schemes: PM-JAY and National Health Mission
- The Budget strengthened major health schemes that directly impact citizens. PM Jan Arogya Yojana (PM-JAY) allocation rose to ₹9,500 crore, expanding coverage and hospital networks.
- The National Health Mission (NHM) received ₹39,390 crore, reinforcing primary healthcare, maternal and child health, and disease control. Together, these schemes anchor India’s public health delivery system.
PM-ABHIM and Infrastructure Expansion
- A major boost was given to Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) with ₹4,770 crore, marking a sharp 67.66% increase.
- The funding supports critical care blocks, public health labs, district hospitals and surveillance systems. Alongside this, investments were announced for cancer centres, trauma and emergency care services, super-specialty blocks and AI-enabled medical facilities.
- This reflects a shift towards preparedness, critical care and modern health infrastructure.
AIIMS, Medical Education and Workforce Strengthening
- Under Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), the allocation rose to ₹11,307 crore to support new AIIMS, existing institutions and medical college upgradation. Since 2014, medical seats have more than doubled, improving doctor availability.
- The Budget also increased funding for human resources for health, nursing education and postgraduate training.
- These steps address India’s long-standing doctor and specialist shortage, a frequently tested topic in exams.
Disease Control, Blood Services and Public Health
- The National AIDS and STD Control Programme saw its allocation rise to ₹3,477 crore, a 30.64% increase, with a strong push for blood transfusion services.
- Funding for blood services alone increased by 37.5%, improving safety and availability.
- These measures strengthen India’s public health surveillance and disease control capacity.
Medical Research, Regulation and Bio Pharma Shakti
- Medical research received a major boost, with the Department of Health Research allocation rising to over ₹4,821 crore, and ICMR funding increasing sharply.
- The Budget also focuses on strengthening CDSCO, improving drug regulation quality and speed.
- A landmark announcement is ‘Bio Pharma Shakti’, a ₹10,000 crore initiative to promote biologics, biosimilars, research and global manufacturing leadership. T
- his connects healthcare with Make in India and innovation-driven growth.
Affordability, Skilling and Emergency Care
- To reduce treatment costs, the Budget exempted customs duty on 17 life-saving cancer drugs and expanded exemptions for rare disease medicines.
- Allied health education received a ₹980 crore phased outlay, creating nearly one lakh skilled professionals.
- Trauma centres will be established in every district hospital, ensuring 24×7 emergency care. These steps directly target out-of-pocket expenditure, affordability and last-mile healthcare access.
Question
Q. Which initiative aims to boost biologics and biosimilars manufacturing in India?
A. Pharma Vision India
B. Bio Pharma Shakti
C. Make Health India
D. Ayushman Plus
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