The Union Budget 2026-27 announced a significant boost for allied health sciences and traditional medicine. Finance Minister Nirmala Sitharaman revealed plans to increase the number of allied and healthcare professionals by one lakh over the next five years. This expansion will be driven by upgrading existing training institutes and establishing new ones.
Allied Health Sciences Expansion
The government aims to train professionals across 10 disciplines. These include optometry, radiology, anesthesia, OT technology, applied psychology, and behavioral health. This focus supports ongoing efforts by the National Commission for Allied and Healthcare Professionals (NCAHP) to standardize training.
New National Skill Qualifications Framework (NSQF) aligned programs will be developed. These will train multi-skilled caregivers. Training will combine core care with allied skills. This includes wellness, yoga, and operation of medical assistance devices.
New Medical Hubs and Institutes
Five regional medical hubs will be established. These will integrate medical, educational, and research facilities. They will feature AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy) centers. Medical value tourism facilitation centers will also be present.
Infrastructure for diagnostics, post-care, and rehabilitation will be included. These hubs are expected to create diverse job opportunities for healthcare professionals. Doctors and allied health professionals will benefit.
Traditional Medicine and Mental Health Focus
Three new All India Institutes of Ayurveda (AIIAs) will open. The World Health Organization’s Global Traditional Medicine Centre (GTMC) in Jamnagar will be upgraded. This aims to enhance research, awareness, and training in traditional medicine.
AYUSH pharmacies and drug testing labs will also be upgraded. This will improve certification standards. The goal is to prepare more skilled personnel to meet global demand for traditional medicine products.
A second National Institute of Mental Health and Neurosciences (NIMHANS) will be established in north India. NIMHANS-2 will follow the model of the Bengaluru institute. This addresses the growing need for mental health services.
The Central Institute of Psychiatry (CIP) in Ranchi and the Lokopriya Gopinath Bordoloi Regional Institute of Mental Health (LPBRIMH) in Tezpur will be upgraded. They will become “Regional Apex Institutions” for mental health care.
Emergency Care Enhancement
The budget also prioritizes emergency and trauma care. Capacity in District Hospitals will be strengthened by 50%. This will be achieved by establishing dedicated Emergency and Trauma Care Centers.