Budget 2026: Govt plans regional medical hubs, Ayurveda institutes in major health push

New Delhi: Finance Minister Nirmala Sitharaman on Sunday proposed to strengthen India's healthcare infrastructure by creating regional medical hubs and new Ayurveda institutes, potentially opening up new career paths for the country's youth in allied health, caregiving, and medical tourism.

In her ninth consecutive budget—and the first on a Sunday in at least a decade—Sitharaman said the government aims to make medical services more accessible while bridging the gap between traditional practices and advanced emergency treatment.

The government plans a significant expansion of specialized mental health and neurological services by expanding the National Institute of Mental Health and Neuro Sciences (NIMHANS). It is a top hospital based in Bengaluru known for its expertise in treating mental, neurological, and neurosurgical conditions.

By scaling the expertise of the NIMHANS, the government aims to meet the rising national demand for mental health support and neurological research.

“Mental health has too long remained at the margins of public discourse, despite its profound influence on productivity, families, and the social fabric of our nation. The recognition accorded in Budget 2026—particularly the proposal to establish NIMHANS 2.0 to widen access to specialized care—signals a thoughtful and necessary recalibration of national priorities," Dr. Samir Parikh, chairperson, Fortis National Mental Health Programme, said.

"Investment in mental-health infrastructure is not merely a healthcare intervention; it is a commitment to dignity, inclusion, and long-term societal resilience. Such steps carry the promise of transforming lives at scale and building a healthier, more compassionate India for generations to come.”

Additionally, the budget outlines a plan to increase the capacity of district hospitals by 50% through new emergency and trauma centers. This expansion is designed to bring critical care closer to citizens, ensuring faster treatment during life-threatening emergencies.

To support these structural upgrades, the budget proposes a massive increase in trained personnel. Over the next five years, the government plans to add 100,000 healthcare professionals and train 150,000 caregivers to improve patient recovery and support doctors.

Furthermore, a new scheme will help states create five regional medical hubs to decentralize high-end services. To promote a holistic approach to wellness, the government will also establish three new All India Institutes of Ayurveda, integrating traditional medicine into the broader national healthcare system.