Union Budget 2026: 5 regional medical tourism hubs to be set up

NEW DELHI: Finance minister Nirmala Sitharaman on Sunday proposed transformative health initiatives in the Union Budget 2026-27, including five regional medical tourism hubs and a Rs 10,000-crore Biopharma Shakti programme over five years, alongside three new All India Institutes of Ayurveda.

Presenting the budget in Parliament, Sitharaman announced, "I propose to launch a scheme to support states in establishing five regional medical hubs."




These hubs will serve as integrated healthcare complexes that combine medical, educational and research facilities, featuring Ayush centres, medical value tourism facilitation centres, and infrastructure for diagnostics, post-care, and rehabilitation

The hubs will promise diverse job opportunities for doctors and allied health professionals (AHPs), strengthening India's global medical tourism edge.

Sitharaman further detailed, "I propose the Biopharma Shakti with an outlay of Rs 10,000 crore over the next five years. This will build the ecosystem for domestic production of biologics and biosimilars."

The strategy includes a biopharma-focused network with three new National Institutes of Pharmaceutical Education and Research (NIPERS) and upgrading seven existing ones. "It will also create a network of 1,000 accredited Indian clinical trials sites," she added.

"We propose to strengthen the central drug standard control organisation to meet global standards and approve time frames, through an approval time frames through a dedicated scientific review cadre, and specialists," she said.

Along with this, the FM announced a major Ayurveda push capitalising on its post-COVID global surge to boost exports, support herb-growing farmers, and create youth jobs in processing.

"Post-COVID, Ayurveda gained similar global acceptance," Sitharaman told Parliament, proposing targeted steps to meet rising international demand:

1. Setting up three new all-India institutes of Ayurveda
2. Upgrading Ayush pharmacies and drug testing labs for top-tier certification standards
3. Enhancing the WHO Global Traditional Medicine Centre in Jamnagar.

These moves will drive evidence-based research, advanced training, and greater awareness for traditional medicine, strengthening India's position as a wellness export hub.

The initiatives align with agri-reforms like Bharat Vistar AI tool, benefiting rural economies where 46.1% of the workforce engages in farming (PLFS 2023-24), by linking herbal cultivation to global markets.

The Ayurveda push is also boosted by the government's Bharat Vistar system by enabling farmers growing medicinal herbs—like those for post-COVID global exports—to access tailored AI advisories on cultivation, productivity, and markets.

Bharat Vistar integrates AgriStack and ICAR data to provide customised tips on crops, soil, and risks in local languages, which can now extend to high-value Ayurvedic herbs boosted by the steps introduced to meet the growing international demands of Ayurveda.

For herb farmers (key to the 46.1% agri workforce per PLFS 2023-24), this means AI-driven guidance on optimal planting, pest control, and yields for coconut, sandalwood, or other AYUSH crops—directly fueling exports, youth processing jobs, and rural incomes.