Budget 2026: Government Announces New All India Ayurveda Institutes, Expansion of Mental Health Facilities

The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman in Parliament, has placed strong emphasis on strengthening traditional medicine and mental healthcare infrastructure across the country.

As part of efforts to meet the growing global demand for Ayurveda, the Budget announced the establishment of three new All India Institutes of Ayurveda. In addition, AYUSH pharmacies and drug testing laboratories will be upgraded to enhance quality standards and improve the certification ecosystem. The government also proposed strengthening the WHO Global Traditional Medicine Centre in Jamnagar to promote research, training and evidence-based practices in traditional medicine.

Mental healthcare has emerged as another key focus area. To address regional gaps, the Finance Minister announced the setting up of a second NIMHANS-like institution, aimed at expanding specialised mental health services and training. Further, the National Mental Health Institutes located in Ranchi and Tezpur will be upgraded as regional apex institutions, enhancing access to advanced mental healthcare and academic support.

The Budget also proposed strengthening emergency health services by establishing emergency and trauma care centres, which will increase the capacity of district hospitals by 50 per cent.

Through these initiatives, the Union Budget 2026–27 seeks to improve access to quality Ayurveda and mental health services, while reinforcing India’s role as a global centre for traditional medicine and comprehensive healthcare.

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