Budget 2026: FM Sitharaman announces establishment of NIMHANS 2.0 in North India, exemption on cancer drugs

NEW DELHI: Presenting the Union Budget 2026-27 in Parliament, Union Finance Minister Nirmala Sitharaman announced the government’s plan to establish NIMHANS 2.0, a premier mental health institute in North India, to address gaps in mental health infrastructure. She also announced the duty exemption on cancer drugs in the Union Budget.

She said the move reaffirms the Centre’s commitment to mental health care and trauma services. “Reaffirming our commitment to mental health and trauma care, there are no national institutes for mental health care in North India. We will therefore set up a NIMHANS 2.0 and also upgrade national mental health institutes in Ranchi and Tezpur as regional apex institutions,” Sitharaman said while presenting the Budget in Lok Sabha today.

The Finance Minister also announced measures to strengthen emergency and trauma care facilities nationwide. She noted that medical emergencies often impose unexpected financial burdens on families, particularly the poor and vulnerable. “We will strengthen and increase these capacities by 50 per cent in district hospitals by establishing emergency and trauma care centres,” she said.

Watch Live: Smt @nsitharaman presents Union Budget 2026–27 in Parliament #ViksitBharatBudget @sansad_tv @PIB_India https://t.co/DieMezvgTp

— Nirmala Sitharaman Office (@nsitharamanoffc) February 1, 2026

In a major relief for cancer patients, the Finance Minister announced the exemption of basic customs duty on 17 cancer-related drugs and medicines. She also said that seven additional rare diseases would be added to the list of diseases eligible for exemption from import duty on personal imports of drugs, medicines, and food intended for special medical purposes.

“To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines. I propose also to add 7 more rare diseases for the purposes of exempting import duties on personal import of drugs, medicines and food for special medical purposes used in their treatment,” she said.

Govt to upgrade allied health institutions, train 1 lakh professionals

Nirmala Sitharaman announced that the government will upgrade existing institutions for allied health professionals and establish new ones in both private and government sectors. This initiative aims to train 1 lakh allied health professionals over the next 5 years across 10 selected disciplines, including optometry, radiology, anaesthesia, and applied psychology.

The Finance Minister stated that the government will also develop a strong care system covering geriatrics and allied care services. To achieve this, a range of National Skills Qualifications Framework (NSQF)-aligned programmes will be developed to train multi-skilled caregivers, combining core care with allied skills such as wellness, yoga, and the operation of medical assistive devices. Over the coming year, 1.5 lakh caregivers will be trained.

“In health, existing institutions for allied health professionals will be upgraded, and new AHP institutions established in both the private and government sectors. This will cover 10 selected disciplines, including optometry, radiology, anaesthesia, OT technology, applied psychology and behavioural health and add one lakh AHPs will be trained over the next five years. A strong care system covering geriatrics and allied care services will be developed. A variety of NSQF-aligned programmes will be created to train multi-skilled caregivers, combining core care and allied skills such as wellness, yoga, and the operation of medical assistive devices. Over the coming year, 1.5 lakh caregivers will be trained”, Sitharaman said.

In a bid to promote India as a hub for medical tourism, the government will launch a scheme to support states in establishing five regional hubs across the country, in partnership with the private sector. These hubs will serve as integrated healthcare complexes combining medical, educational, and research facilities.

The hubs will include AYUSH centres, medical value tourism facilitation centres, and infrastructure for diagnostics, post-care, and rehabilitation. They will provide diverse opportunities and job opportunities for healthcare professionals, including doctors and allied health professionals.

“To promote India as a hub for medical tourism services, I propose to launch a scheme to support states in establishing five regional hubs across the country in partnership with the private sector. These hubs will serve as integrated healthcare complexes combining medical, educational, and research facilities. They will include AYUSH centres, medical value tourism facilitation centres, and infrastructure for diagnostics, post-care, and rehabilitation. These hubs will provide diverse opportunities, job opportunities for healthcare professionals, including doctors and allied health professionals,” Sitharaman added.

Sitharaman announced three new All India Institute of Ayurveda in line with the objective of meeting global demand for Ayurvedic medicine. She said that Ayurveda has gained global acceptance post-Covid-19.

She said, “Ancient Indian Yoga, already respected in all parts of the world, was given a mass global recognition when Prime Minister Narendra Modi took it to the UN. Post Covid, Ayurveda gained a similar acceptance and recognition.

Exporting quality Ayurveda products helps farmers to grow the herbs and those who process the products. To meet growing global demand, a few more steps are being taken. I propose three new All India Institutes for Ayurveda.

“All India Institute of Ayurveda in New Delhi was established as a Centre of Excellence for Ayurveda Tertiary Health Care.FM Sitharaman also proposed to upgrade AYUSH pharmacies and the WHO Global Traditional Medicine Centre (GTMC) in Jamnagar.

“To upgrade AYUSH pharmacies and drug testing labs for higher standards and make available more skilled personnel. Three, upgrade the Global Traditional Medicine Centre in Jamnagar,” she added.

In addition, Sitharaman said the government has accepted the 16th Finance Commission’s recommendation to retain the vertical share of devolution to states at 41 per cent. She announced an allocation of Rs 1.4 lakh crore to states for the 2026-27 financial year. (ANI)