
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.
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.
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.
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.
| 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 |