Major medical relief as government targets cancer costs and mental health
Finance Minister Nirmala Sitharaman has unveiled a transformative healthcare roadmap in the Union Budget 2026 Healthcare announcements. The primary highlight is the establishment of NIMHANS 2.0 in North India. This move aims to fill a critical gap in mental health infrastructure, as the region currently lacks a premier national institute for specialized psychiatric care. Alongside this, the government will upgrade existing mental health centers in Ranchi and Tezpur to serve as regional powerhouses.
In a massive win for patient welfare, the Finance Minister announced a total customs duty exemption on 17 essential cancer drugs. This policy shift is expected to significantly lower the cost of treatment, providing much-needed financial breathing room for families battling the disease. Furthermore, seven additional rare diseases have been included in the duty-free list for personal drug imports, ensuring that specialized treatments and medical foods become more accessible.
The Budget also focuses heavily on life-saving infrastructure. The Finance Minister noted that sudden medical crises often push vulnerable families into poverty. To combat this, the government plans to increase emergency and trauma care capacities by 50 percent across district hospitals nationwide. This expansion ensures that critical care is available closer to home for millions of citizens.
Traditional medicine received a significant boost as well. Acknowledging the global rise in Ayurveda's popularity, Sitharaman proposed three new All India Institutes of Ayurveda. These centers will help meet the international demand for high-quality herbal products and research. Additionally, the government will modernize AYUSH pharmacies and the WHO Global Traditional Medicine Centre in Jamnagar to maintain world-class standards.
On the fiscal side, the 16th Finance Commission’s advice was upheld, keeping the states' share of tax devolution at 41 percent. This results in an allocation of Rs 1.4 lakh crore to states for the 2026-27 financial year, ensuring regional governments have the funds to implement these healthcare upgrades.
With Agency Inputs
