Budget 2026: Govt to set up 5 medical tourism hubs, train 150K caregivers

Finance Minister Nirmala Sitharaman announced measures in the Union Budget 2026-27 to boost medical tourism, including support for five regional hubs in partnership with states and the private sector

In the Union Budget for 2026-27, Finance Minister Nirmala Sitharaman on Sunday announced a series of measures aimed at boosting India’s medical tourism ecosystem, including support for setting up five regional medical tourism hubs in partnership with states and the private sector.

 

Presenting her ninth consecutive Union Budget, Sitharaman said the government would work with states to develop these hubs as integrated centres offering modern healthcare services along with Ayush-based treatment facilities.

 

“As part of our efforts to position India as a global healthcare destination, the government will support states in establishing five regional hubs for medical tourism,” the finance minister said in her Budget speech.

 

 

The proposed hubs will house Ayush centres and are expected to be developed with private sector participation. To strengthen the healthcare workforce, Sitharaman announced a plan to train 1.5 lakh caregivers over the next year. The government will also develop National Qualifications Skills Framework (NQSF)-aligned programmes to create a pool of multi-skilled caregivers.

 

In addition, the Budget outlined steps to upgrade allied health institutes to improve the availability of trained healthcare professionals. Sitharaman also proposed upgrading Ayush pharmacies and drug testing laboratories to enhance quality standards.

 

Separately, the finance minister announced loan-linked subsidy support for veterinary colleges, as part of broader efforts to strengthen healthcare and allied services infrastructure.

 

Nilesh Maheshwari, Partner and Pharma, Biotech & Life Sciences Leader, Grant Thornton Bharat, said: “Establishing five regional medical hubs through PPP models is a structural intervention that can reshape India’s healthcare delivery architecture. Strategically distributed hubs can address regional inequities by bringing advanced care closer to underserved areas, reducing avoidable patient migration and the associated out-of-pocket expenditure.”

 

The announcements come against the backdrop of the Economic Survey, released by the Department of Economic Affairs on January 29, which highlighted the role of services, including healthcare, in sustaining India’s growth momentum.