Budget 2026: FM Sitharaman Announces 3 New All India Institutes Of Ayurveda, Major Upgrade For AYUSH Ecosystem

New Delhi: The Union Budget on Sunday announced a significant expansion of India’s traditional medicine infrastructure, with Finance Minister Nirmala Sitharaman unveiling plans to set up three new All India Institutes of Ayurveda (AIIA) and upgrade AYUSH pharmacies and drug testing laboratories to meet higher global certification standards.

Presenting the Budget, Sitharaman said the move is aimed at strengthening India’s position as a global hub for traditional medicine, at a time when Ayurveda and other AYUSH systems are witnessing growing international acceptance, particularly in the post-Covid period.

Under the proposal, regional medical hubs across the country will be equipped with AYUSH centres, supported by improved diagnostic infrastructure. The government said this would enhance access to traditional healthcare while integrating it more closely with modern medical systems.

According to Budget documents, the broader AYUSH expansion includes the creation of 10 new allied health disciplines, such as optometry, anaesthesia, applied psychology and behavioural health, with a target to train one lakh allied health professionals over the next five years.

The Finance Minister announced that AYUSH pharmacies and drug testing laboratories will be upgraded to create a robust certification ecosystem and ensure quality assurance for domestic use as well as exports. The upgrade is also expected to generate a pool of skilled professionals to support the sector’s expanding footprint.

Highlighting India’s soft power in healthcare, Sitharaman recalled that ancient Indian yoga gained mass global recognition after Prime Minister Narendra Modi took the initiative to the United Nations, leading to the establishment of International Yoga Day. She noted that Ayurveda has followed a similar trajectory of global acceptance after the Covid-19 pandemic, as countries increasingly look at preventive and holistic healthcare solutions.

“Exporting quality Ayurvedic products supports farmers who cultivate medicinal herbs and provides employment opportunities for youth engaged in processing and value addition,” the Finance Minister said, underlining the sector’s role in rural livelihoods and job creation.

To further strengthen the evidence base of traditional medicine, the Budget also proposed to upgrade the WHO Global Traditional Medicine Centre in Jamnagar, with a focus on bolstering research, training and global awareness around Ayurveda and other traditional systems.

In a related announcement, Sitharaman said the government will roll out a capital subsidy support scheme for veterinary colleges under the animal husbandry sector, aimed at improving infrastructure and capacity building in veterinary education.

The announcements mark a comprehensive push to modernise India’s traditional medicine ecosystem, align it with global standards and meet the rising international demand for Ayurveda and AYUSH-based products, while reinforcing India’s leadership in holistic healthcare.

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