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New Delhi, February 1, 2026 — The Union Budget for 2026–27 has placed renewed emphasis on traditional healthcare systems, with Finance Minister Nirmala Sitharaman announcing the creation of three new All India Institutes of Ayurveda to strengthen education, treatment, and research capacity in the AYUSH sector. The move is aimed at meeting the rising domestic and global demand for evidence-backed traditional medicine and holistic care.
Presenting the budget in Parliament, the Finance Minister said the new institutes will function as national centres of excellence and are expected to raise academic standards, expand clinical services, and promote advanced research in Ayurveda. The plan reflects the government’s broader strategy to position India as a global hub for integrative and preventive healthcare.
Alongside the new institutes, several supporting measures were outlined to deepen the AYUSH ecosystem. The Centre will support states in setting up five regional medical hubs in partnership with private players. These hubs are envisioned as integrated healthcare complexes that will include AYUSH facilities and are expected to promote medical value travel by combining treatment, wellness, and recovery services under one framework.
Quality control and standardisation of medicines also received attention in the budget proposals. The government plans to upgrade AYUSH pharmacies and drug testing laboratories to improve certification systems and ensure higher safety and quality benchmarks for traditional formulations. This step is expected to boost credibility and export potential of AYUSH products.
Another major announcement involves the strengthening of the WHO Global Traditional Medicine Centre in Jamnagar, Gujarat. The centre will be upgraded to expand its role in scientific validation, data-driven research, and international collaboration in traditional medicine practices. The enhancement is intended to improve global awareness and acceptance of Indian knowledge systems.
The budget also includes a workforce development component. A national programme will be rolled out to train one lakh allied health professionals over the next five years across ten new disciplines, including wellness and yoga. The initiative aims to create a skilled support workforce aligned with preventive and lifestyle-based healthcare models.
The Finance Minister noted that Ayurveda has seen wider global recognition in the years following the COVID-19 pandemic, echoing the international acceptance earlier achieved by yoga. The new measures are designed to build institutional strength, improve standards, and support India’s ambition to become a trusted global destination for holistic and traditional healthcare services.
