AYUSH in Budget 2026-27
Context:
The Union Budget 2026-27 has provided a significant push to the AYUSH sector (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy).
This move aligns with the government's strategy to transform traditional medicine from a welfare-oriented public health program into a regulated industry and a driver of economic growth.
Key Budgetary Highlights:
The total allocation for the Ministry of AYUSH has reached ₹4,408 crore, a substantial increase from ₹3,992 crore in 2025-26 and more than double the amount allocated in 2020-21 (₹2,122 crore).
The finance minister announced plans to set up three new All-India Institutes of Ayurveda.
These are modeled after AIIMS to serve as the "gold standard" for traditional medicine, focusing on treatment, high-level research, and teaching.
Funds have been pitched to upgrade the WHO Global Traditional Medicine Centre in Jamnagar, Gujarat.
Independent estimates suggest the AYUSH sector could be worth $26.5 billion (₹2.3 lakh crore) in 2026, with startups and MSMEs accounting for 80% of this value.
Strategic Developments:
EU Free Trade Agreement (FTA):
A week before the budget, India signed a new Free Trade Agreement with the European Union.
This agreement is expected to facilitate easier access for Indian AYUSH doctors and products into the European market.
Standardization Push:
The budget emphasizes upgrading testing facilities and pharmacies.
This signals an effort to "recast" traditional medicine as scientific and evidence-based rather than solely based on lineage or experience.