Finance Minister Nirmala Sitharaman in her Budget 2026 announced several measure to position India as a premier global destination for Medical Value Tourism (MVT) and to bridge the gap in the allied health workforce.
She announced "Heal in India" initiative which will include establishing five regional medical tourism hubs in partnership with the private sector. These hubs will be integrated complexes featuring modern hospital infrastructure, advanced diagnostics, and post-care rehabilitation, the minister told Parliament on February 1.
The Budget placed significant focus on traditional medicine to attract international patients, which includes setting up three new All India Institutes of Ayurveda and upgrading existing AYUSH pharmacies and drug testing labs.
The MVT sector is projected to grow to $13.42 billion by 2026, driven by simplified visa procedures and cost-effective treatment options.
The sector is a cornerstone of the government's "Viksit Bharat" vision for high-quality, cost-effective global healthcare.
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Allied health workers
To support the expanding healthcare infrastructure, the budget outlined a roadmap for human resource development to upgrade existing institutions to train health professionals (AHPs), particularly in 10 fields such as optometry, radiology, anesthesia, and behavioral health.
A new initiative aims to train 1.5 lakh geriatric and allied caregivers over the next five years to meet the growing demand in both domestic care and the global medical tourism sector.
The number of international patients visiting India increased from 1,82,945 in 2020 to 6,44,387 in 2024. In recent years, Yoga, Ayurveda, and wellness-based therapies have emerged as major contributors to this growth, positioning India as a preferred destination for holistic, evidence-based care.
These measure came with a push for the pharma sector. The minister announced an allocation of Rs 10,000 crore over the next five years under the "Biopharma Shakti" programme to boost domestic production of biologics and biosimilars.
"Biopharma Shakti" will focus on health advancement through knowledge, technology, and innovation. The minister said India's disease burden is observed to be shifting towards non-communicable diseases such as diabetes, cancer and autoimmune disorders.
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