The Union Budget 2026-27 on Sunday raised the allocation for the Ministry of AYUSH by nearly 20 per cent, increasing it to ₹4,408.93 crore from ₹3,671.82 crore in the revised estimates for 2025-26, alongside plans to expand Ayurveda-focused research infrastructure.
Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman announced the establishment of three new All India Institutes of Ayurveda, aimed at strengthening research capacity and meeting growing global demand for traditional medicine.
“Ancient Indian Yoga, already respected in several parts of the world, was given a mass global recognition when the Prime Minister took it to the United Nations,” Sitharaman said. Referring to Ayurveda’s post-pandemic resurgence, she added that exporting quality Ayurvedic products could benefit both farmers cultivating medicinal herbs and youth engaged in processing and value addition.
To support this expansion, the Finance Minister proposed a multi-pronged push, including the setting up of the new institutes, upgrading AYUSH pharmacies and drug-testing laboratories, improving certification standards, and expanding the pool of skilled professionals. She also announced plans to upgrade the WHO Global Traditional Medicine Centre in Jamnagar to strengthen evidence-based research, training and global outreach.
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Among centrally sponsored schemes, the National AYUSH Mission saw a significant increase, with allocations rising from ₹780.96 crore in 2025–26 to ₹1,300 crore in 2026–27, marking a 66.5 per cent hike.
However, not all institutions saw increased funding. The allocation for the All India Institute of Ayurveda was reduced by 12 per cent, while funding for the Institute of Teaching and Research in Ayurveda declined from ₹279.24 crore to ₹219.05 crore.
The government’s proposals signal a continued emphasis on positioning AYUSH systems, particularly Ayurveda, as a key component of India’s healthcare and wellness economy, even as allocations within the sector are selectively recalibrated.