Union Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026-27, marking her ninth consecutive Budget presentation. The proposals, aimed at strengthening India's economic and social infrastructure, focus on healthcare, strategic manufacturing, advanced technology, infrastructure development, and financial sector reforms, as the country continues on its path to Viksit Bharat.
Budget 2026-27 Highlights: Healthcare, Infrastructure, and Financial Sector Reforms
Healthcare Sector Boost
In a major push to healthcare, Sitharaman proposed the creation of five regional medical hubs to promote India as a global medical tourism destination. These hubs will include Ayush centres, diagnostic infrastructure, post-care rehabilitation, and will generate diverse job opportunities for medical service providers.
She also announced the establishment of three new All India Institutes for Ayurveda to meet growing global demand, along with plans to upgrade Ayush pharmacies, drug testing labs, and the WHO Traditional Medicine Centre in Jamnagar, Gujarat, to bolster evidence-based research on traditional medicine.
Under the "second Kartavya," existing allied health institutions will be upgraded, and new Allied Health Professional Institutions (AHPI) will be set up in both public and private sectors, covering 10 disciplines including optometry, radiology, anesthesia, OT technology, applied psychology, and behavioral health. The government plans to train 1 lakh allied health professionals over the next five years and create 1.5 lakh caregivers for geriatric and NSQF-aligned programmes.
The Budget also earmarks Rs 10,000 crore for the Bio Pharma Shakti scheme to promote biologics and biosimilar drugs, aiming to position India as a global bio-pharma hub while tackling the growing burden of non-communicable diseases.
Infrastructure and Strategic Sectors
Sitharaman announced a capital expenditure of Rs 12.2 lakh crore, focusing on highways, ports, railways, power projects, and big-ticket infrastructure initiatives to drive growth and job creation. The Budget proposes scaling up manufacturing in seven strategic and frontier sectors and creating champion MSMEs, supported by an Infrastructure Risk Development Fund to accelerate project development.
She emphasized that India must integrate more deeply with global markets, exporting more goods and attracting foreign investment, while maintaining fiscal prudence and monetary stability.
Financial Sector Reforms
In the financial sector, Sitharaman proposed the establishment of a high-level Banking Committee for Viksit Bharat to conduct a comprehensive review of banks and non-banking financial companies. The panel will recommend reforms to improve efficiency, scale, and preparedness for future challenges, ensuring financial stability, inclusion, and consumer protection.
She also announced the restructuring of Power Finance Corporation and Rural Electrification Corporation to strengthen public sector financial institutions in the energy sector. Reforms in the Foreign Exchange Management Act are planned to simplify foreign investments, including:
Increasing the portfolio investment scheme limit for foreign residents from 5% to 10% per investor
Raising the combined limit from 10% to 24%, to enhance market liquidity
Additionally, measures to promote corporate and municipal bondswill provide alternative funding for urban infrastructure, attracting broader domestic and global participation.
Vision for Viksit Bharat
The Finance Minister said the Budget is based on three 'kartavyas': accelerate and sustain economic growth, fulfill aspirations of people and build capacity, and ensure every family, community, and region has access to resources. Over 350 reforms have already been rolled out under the government's "Reforms Express," combining ambition with inclusion to drive India towards Viksit Bharat.
Sitharaman highlighted the role of cutting-edge technologies, including AI, as growth multipliers and emphasized the importance of sustaining momentum from structural reforms to maintain India's growth trajectory.
