The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman, has outlined a significant expansion of health-related education and skill development initiatives, with a focus on allied health sciences (AHPs), traditional medicine training and mental health education.
Allied Health and Paramedical Courses Get Major Focus
To address longstanding shortages in frontline healthcare staffing and training, the Budget proposes to train and credential one lakh allied and healthcare professionals (AHPs) over the next five years by upgrading existing institutes and establishing new training centres for AHP disciplines. This push includes key fields such as optometry, radiology, anaesthesia technology, operating theatre technology, applied psychology and behavioural health, aligning with national standards set by the National Commission for Allied and Healthcare Professionals (NCAHP). The government has allocated Rs 1,000 crore solely for the expansion and quality enhancement of allied health professional education under the Ministry of Health and Family Welfare’s budget. Training will also extend to wellness and geriatric care, with plans to develop a strong care ecosystem that integrates multi-skilled caregivers capable of operating medical assistance devices and delivering holistic support.
New All India Institutes of Ayurveda and Traditional Medicine
As part of strengthening traditional medicine education and research, the Budget proposes the establishment of three new All India Institutes of Ayurveda (AIIAs). These institutes will expand capacity for education, research and clinical services in Ayurveda and related systems of care such as Yoga and naturopathy. In addition, existing AYUSH pharmacies and drug testing laboratories will be ramped up to improve certification standards and ensure wider access to quality medicinal products, further supporting professional training and employment in traditional medicine.
Mental Health Education and New NIMHANS Campus
Mental health has also been prioritised in Budget 2026. A second National Institute of Mental Health and Neuro Sciences (NIMHANS) campus, often termed NIMHANS-2, is proposed for North India, aiming to decentralise access to advanced mental healthcare training, research and treatment. Alongside this, two existing mental health institutes — the Central Institute of Psychiatry (CIP) in Ranchi and the Lokopriya Gopinath Bordoloi Regional Institute of Mental Health in Tezpur — are slated for upgrades as regional apex institutions to support expanded educational and clinical capacities.
Integrated Medical Hubs and Regional Focus
The Budget further proposes five regional medical hubs that integrate medical care, education and research facilities, serving as centres for both practical learning and service delivery. These hubs will bring together AYUSH centres, diagnostic services and rehabilitation infrastructure, while also supporting medical tourism and employment generation across healthcare and allied sectors.
Broader Impact on Healthcare Education and Employment
By coupling traditional education pathways with emerging healthcare skill needs, the Budget’s initiatives aim to bridge gaps in professional training and workforce readiness. The emphasis on AHPs, paramedical education and mental health specialists is expected to create diverse career avenues in hospitals, clinics, research institutions and community care settings. Experts note that aligning healthcare education expansion with practical training infrastructure and certification standards could significantly boost India’s capacity to meet both domestic healthcare needs and global employment opportunities in the growing health services market.