Budget 2026 Delivers Pharma Boost, Eases Tax Burden On Cancer Drugs

Sitharaman allocated ₹1,06,530.42 crore to the Ministry of Health and Family Welfare, proposing a scheme to support states in establishing five regional medical hubs and others

Union Budget 2026, Nirmala Sitharaman, Healthcare, Budget Bottomline, Budget 2026, Healthcare

With the Indian pharma sector facing 100% US tariffs, Union Finance Minister Nirmala Sitharaman on Sunday launched Biopharma Strategy for Healthcare Advancement through Knowledge, Technology and Innovation (SHAKTI), aimed at positioning the country as a global biopharma manufacturing hub with an outlay of  ₹10,000 crores over the next five years and customs duty waivers on a handful of cancer and rare disease drugs.

Under this initiative, the government will build the ecosystem for domestic production of biologics and biosimilars, which will include a Biopharma-focused network with three new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading seven existing ones.

The announcement comes at a time when the country is trying to reduce its dependency on China for pharma Active Pharmaceutical Ingredients. Increasing the healthcare budget by 10% as compared to last year’s budget, Sitharaman allocated ₹1,06,530.42 crore to the Ministry of Health and Family Welfare, proposing a scheme to support states in establishing five regional medical hubs, NIMHANS and others.

She announced plans to establish five regional medical hubs in partnership with the private sector, which are expected to include Apollo, Max, Fortis, Dr Lal Pathlabs, and Metropolis.

AYUSH Centres

The minister also said that the government will set up three new All India Institutes of Ayurveda, upgrade AYUSH pharmacies and Drug Testing Labs for a higher standard of certification ecosystem.

She said that the government will also upgrade the WHO Global Traditional Medicine Centre in Jamnagar to bolster evidence-based research, training and awareness for traditional medicine.

The minister also said that 50% capacity will be increased in all district hospitals by establishing emergency and trauma care centres.

The prioritisation of long-term capacity and capability building through higher-end manufacturing, advanced therapies and improved access to quality care is laying the foundation for greater self-reliance and enhanced global competitiveness

— Achin Gupta, MD & GCEO (Designate), Cipla Limited, and Co-Chair, FICCI Pharma Committee

Meanwhile, the budget proposes that the existing institutions for Allied Health Professionals (AHPs) be upgraded, and new AHP institutions be established in the private and government sectors.

“This will cover 10 selected disciplines, including optometry, radiology, anaesthesia, OT Technology, Applied Psychology and Behavioural Health and add 100,000 AHPs over the next 5 years,” the Minister said.

Nilesh Maheshwari, Partner and Pharma, Bio Tech & Life Sciences Leader, Grant Thornton Bharat, said that ₹10,000 crore outlay under Biopharma SHAKTI will significantly accelerate India’s transition towards innovation-driven pharmaceuticals by strengthening research infrastructure, advanced technology hubs, and clinical standards, enabling progress in biologics, vaccines, and next-generation therapies.

Along with this, the government will develop a variety of National Skills Qualifications Framework (NSQF) aligned programmes to train multiskilled caregivers combining core care and allied skills, such as, wellness, yoga and operation of medical and assistive devices.

Training For Caregivers

“In the coming year, 1.5 lakh caregivers will be trained,” Sitharaman said. 

These caregivers are needed to bridge the critical gap between the rising demand for elderly patient care and the scarcity of qualified professionals, especially as traditional joint family systems break down.

By 2050, India is projected to experience a significant demographic shift, with the population of people aged 60 and older expected to surge to 347 million, from around 153 million in 2023.

Dr Kanika Batra Modi, Assistant Director and Clinical Lead, Gynaecological oncologist, the Max Institute of Cancer Care, New Delhi, said that the government’s initiative to train 1.5 lakh multi-skilled caregivers will significantly strengthen maternal and women’s healthcare support systems, particularly in Tier II, Tier III, and rural areas. 

A healthcare budget is an essential element in the Union Budget. It is a financial plan for developing, maintaining and improving the country's healthcare system. This budget covers various aspects, including infrastructure, medical research, preventive care, health insurance and public health programmes.

This is a free story, Feel free to share.

facebooktwitterlinkedInwhatsApp