Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 on February 1, 2026, outlining a strategic pivot that places healthcare among the highest-priority sectors for investment and reform. The budget reflects the government’s recognition that non-communicable diseases now drive the majority of mortality and economic burden, while also addressing the need for greater self-reliance in critical medical supplies following global supply chain disruptions.

The overall allocation for the Ministry of Health and Family Welfare has seen a substantial increase of 18–22% compared to the previous year, with targeted funding directed toward several key areas. Chronic disease prevention and management received a dedicated envelope of approximately ₹8,000 crore, aimed at expanding screening, early diagnosis, and community-level care for diabetes, hypertension, cardiovascular diseases, cancers, and chronic respiratory conditions. This includes strengthening NCD clinics in every district hospital, mobile screening units, and incentives for states to achieve better control rates in high-risk populations.

A major highlight was the launch of the Biopharma Shakti Mission, a new national programme designed to boost domestic manufacturing of biologics, biosimilars, monoclonal antibodies, vaccines, and advanced therapies. The mission will offer enhanced production-linked incentives, capital subsidies for greenfield and brownfield projects, R&D grants, and expedited regulatory pathways for indigenous biopharma products. It aims to reduce India’s dependence on imported biologics (currently 60–70% by value) while creating thousands of high-skilled jobs and strengthening export competitiveness in global markets.

The budget also continues strong support for digital health under the Ayushman Bharat Digital Mission, with increased funding for ABHA adoption, health record linkage, telemedicine expansion, and AI-enabled tools for risk stratification and chronic care. Telemedicine and home-based care pilots received dedicated resources, including subsidies for remote monitoring devices and training for frontline workers.

Other notable health-related announcements include:

Further expansion of cancer care infrastructure, with additional funding for day-care chemotherapy units and regional cancer centres

Increased allocation for mental health programmes, including integration of digital mental health platforms in primary care

Continued support for nutrition and maternal-child health under Poshan Abhiyaan and related schemes

Tax incentives for private-sector investment in underserved districts and high-priority areas such as rare diseases and antimicrobial resistance

The Finance Minister emphasised that the budget’s health allocations are designed to reduce out-of-pocket expenditure, prevent catastrophic health spending, and build long-term resilience in the face of rising chronic disease burden and future pandemics.