Union Budget 2026-27: Govt to set up 3 new All India Institutes of Ayurveda

Finance Minister Nirmala Sitharaman proposed setting up three new All India Institutes of Ayurveda in her Union Budget 2026-27 speech on Sunday. These institutions are aimed at boosting research, education, and healthcare capacity across the country.

The government, she said, is also planning to introduce 10 new allied health disciplines — including optometry, anaesthesia, applied psychology and behavioural health. The aim is to train one lakh allied health professionals over the next five years, the FM said.

Check other announcements Nirmala Sitharaman made for the education sector in the Union Budget 2026-27:

• The Centre will upgrade Ayush pharmacies and drug testing labs, and the WHO (World Health Organization) Traditional Medicine Centre at Jamanagar, Gujarat.
• FM Sitharaman also announced that the government will support five university townships in the vicinity of major industrial logistics centres.
• She also proposed a loan-linked capital subsidy support scheme for veterinary colleges, hospitals, and diagnostics laboratories.
• The Centre will also set up one girls' hostel in every district of the country. There are over 700 districts in the country. The move is reportedly aimed at ensuring safe accommodation for female students to help reduce dropouts and support continued education.
• The finance minister said the Budget focuses on strengthening funding for girls’ education under initiatives such as the Vigility Girls’ Fund.
• She also announced setting up a high-powered ‘Education to Employment and Enterprise’ standing committee to recommend measures that focus on the growth of the services sector. This will make the country a global leader in services, with a 10 per cent global share by 2047, Sitharaman said in her Budget speech.

• With a focus on industry-ready skills and global standards, the Budget has also proposed the establishment of a National Institute of Hospitality to strengthen professional training in hospitality and tourism.
• FM Sitharaman also announced the setting up of a new design institute in the eastern region. This move, she said, is aimed at strengthening creative education and expanding design-led skill development beyond metro cities.
• The Union Budget proposes support for the Indian Institute of Creative Technologies in Mumbai to establish e-content labs across more than 15,000 secondary schools.

• She also proposed to establish ABGC (Animation, Visual Effects, Gaming and Comics) content creator labs across 1,500 secondary schools and 500 colleges.
• The finance minister has also announced a reduction in the Tax Collected at Source (TCS) rate for foreign education and medical expenses under the Liberalised Remittance Scheme. The tax has been lowered from 5% to 2%.