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Provisions for Ayurveda in budget 2026

The Union Budget 2026–27, presented on February 1, 2026, marks a major strategic shift for Ayurveda. Building on the global interest generated by the India-EU FTA, the government has moved from mere “promotion” to “industrialization” and “standardization” of the sector.

The Ministry of AYUSH saw a significant 20% increase in allocation, rising to ₹4,408.93 crore for the 2026–27 fiscal year.


1. Institutional & Research Expansion

The budget focuses on creating a “Gold Standard” for Ayurvedic clinical practice and research to match international requirements.

  • Three New All India Institutes of Ayurveda (AIIA): These will be established as premier tertiary care and research centers, modeled after the existing AIIA in New Delhi.

  • Upgrade of WHO Global Traditional Medicine Centre: Specific funds were allocated to upgrade the Jamnagar center in Gujarat to bolster evidence-based research and global training.

  • Biopharma Shakti Program: This new ₹10,000 crore initiative includes a focus on “Biologics and Biosimilars,” which will support the development of standardized herbal extracts and phytopharmaceuticals for global markets.

2. Workforce & Skill Development

To address the professional mobility provisions of the India-EU FTA, the budget invests heavily in human capital:

  • 1.5 Lakh Caregivers: A dedicated scheme to train 1.5 lakh certified caregivers in Yoga and Ayurveda-based services to meet the rising domestic and international demand for home healthcare.

  • 10 New Allied Health Disciplines: The introduction of these disciplines (including behavioral health and rehabilitation) will integrate with Ayurvedic practice to create a more “holistic” workforce.

  • Skill Upgradation: Funds have been allocated to provide advanced training to existing AYUSH doctors to align their clinical documentation with global Evidence-Based Medicine (EBM) standards.

3. Manufacturing & Export Ecosystem

  • Pharmacy & Lab Upgrades: The budget proposes upgrading AYUSH pharmacies and drug testing laboratories to the highest standards of certification to eliminate issues related to heavy metals or contamination in exports.

  • Five Regional Medical Tourism Hubs: These hubs will be set up in partnership with the private sector. They will feature dedicated AYUSH centers to attract international patients, particularly from the EU and Middle East.

  • Support for Farmers: Through the Bharat Vistar system, farmers growing medicinal herbs will receive AI-based advisories on cultivation and market prices, ensuring a steady supply of high-quality raw materials for Ayurvedic medicines.


Summary of Key Figures

Provision Budget 2026–27
Total AYUSH Allocation ₹4,408.93 Crore (20% increase)
Biopharma Shakti Fund ₹10,000 Crore (Over 5 years)
New Institutions 3 All India Institutes of Ayurveda
Workforce Target 1.5 Lakh trained caregivers