Union Budget 2026: Cheaper 17 Cancer Drugs, NIMHANS-2 Announced, ₹10,000 Cr Biopharma Mission and more

New Delhi, Feb 1, 2026: Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 today, marking a historic milestone as India’s total central healthcare allocation officially crossed the ₹1 lakh crore threshold.

The combined outlay for the Department of Health and Family Welfare, Health Research, and the Ministry of AYUSH stands at ₹1,03,852 crore, signaling a significant shift toward biopharma innovation and specialized mental health infrastructure.

1. Biopharma SHAKTI: A ₹10,000 Crore Innovation Leap: The standout announcement is the Biopharma SHAKTI mission. With an outlay of ₹10,000 crore over five years, the government aims to transform India into a global hub for biologics and biosimilars. This includes:

• Establishing three new National Institutes of Pharmaceutical Education and Research (NIPERs).

• Developing 1,000 accredited clinical trial sites to boost indigenous medical research.

2. Cancer & Rare Disease Drugs to Become Cheaper: In a move to reduce out-of-pocket expenditure, the Budget has fully exempted 17 life-saving cancer drugs from basic customs duty. This includes critical medicines like Ribociclib, Abemaciclib, and Venetoclax. Additionally, seven rare diseases have been added to the duty-exemption list for imported medicines and special medical foods.

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3. NIMHANS-2 and Mental Health Upgrades: Acknowledging the rising mental health burden, the FM announced the establishment of NIMHANS-2 in North India. To further decentralize apex-level care, existing mental health institutes in Ranchi and Tezpur will be upgraded to Regional Apex Institutions.

4. Global Push for AYUSH & Traditional Medicine: As part of the “Viksit Bharat” vision, the Ministry of AYUSH received a significant boost:

• Three new All India Institutes of Ayurveda (AIIA) will be set up.

• The WHO Global Traditional Medicine Centre in Jamnagar will be upgraded to foster evidence-based research.

• 1.5 lakh caregivers will be trained specifically in Yoga and Ayurveda-based services.

5. Skilling 1 Lakh Allied Health Professionals: To support doctors and improve the patient-to-staff ratio, the government will train 1 lakh allied health professionals over the next five years. This training will cover 10 critical disciplines, including Radiology, Anesthesia, Optometry, and Behavioral Health.