Union Budget 2026-27: Experts Hail Focus on Education, Healthcare, Manufacturing, and Innovation as Key to Viksit Bharat
The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, emphasizes a Yuva Shakti-driven approach, prioritizing manufacturing in strategic sectors like semiconductors, rare earth minerals, biopharma, and textiles, while maintaining fiscal discipline with a reduced deficit target of 4.3% of GDP. Key announcements include massive infrastructure spending at ₹12.2 lakh crore, establishment of university townships near industrial corridors, girls’ hostels in every district for STEM institutions, Biopharma Shakti initiative, enhanced healthcare infrastructure, and support for allied health professionals and medical tourism.
Industry leaders and experts have welcomed these measures, viewing them as transformative steps toward aligning education with employment, boosting healthcare innovation, and driving economic growth through 2047.
Education as a National Growth Engine
Prof. M. A. Venkataramanan, Pro Vice-Chancellor at FLAME University, highlighted the budget’s shift in positioning education as a core driver of national progress.
“The Union Budget 2026 clearly signals a shift from education as a standalone sector to education as a national growth engine. By strengthening education-to-employment alignment through a high-powered standing committee, investing in university townships near industry corridors, and empowering City Economic Regions, the government is building ecosystems where learning, research, and enterprise reinforce each other. This creates an urgent demand for graduates who can think across disciplines, apply knowledge in real-world contexts, and work at the intersection of technology, policy, sustainability, and society.
At FLAME University, our interdisciplinary, experiential learning model is designed precisely for this moment—where capital expenditure, infrastructure expansion, and services-led growth require adaptable, globally-relevant talent. Continued investment in frontier research infrastructure, including four national astronomy and telescope facilities, strengthens India’s global academic standing and opens new avenues for international research collaboration.
Equally transformative are structural enablers such as capital support for one girls’ hostel in every district for STEM institutions, which addresses access, safety, and long-term retention of women in science and technology. Simplifying tax compliance for faculty and researchers further strengthens global academic mobility.
Together, these measures reposition our universities as engines of employability, innovation, and global engagement, preparing our multidisciplinary graduates and research leaders who can meaningfully contribute to India’s economic and knowledge ambitions through 2047 and beyond.”
Healthcare and Regenerative Medicine Get Major Boost
The budget’s emphasis on healthcare infrastructure, biotechnology, and advanced research drew praise from medical experts.
Dr. Pradeep Mahajan, Regenerative Medicine Researcher and Founder of StemRx, noted the progressive push for the sector.
“The Union Budget 2026–27 places strong emphasis on strengthening India’s healthcare system and medical research, making it one of the most progressive budgets for the health sector in recent years. Record investments in district hospitals and trauma centres will improve access to advanced medical care at local levels, while the introduction of AI-based healthcare technologies will enhance diagnosis, treatment, and efficiency in public health services.
A key positive aspect of the budget is its focus on biotechnology and advanced medical research. Increased support for biological drugs, biotech institution upgrades and clinical trials creates a favourable environment for innovation in stem cell therapies, gene therapies, CRISPR research, and regenerative medicine. India’s growing contribution to advanced treatments such as CAR-T cell and haemophilia therapies further highlights this progress.
These reforms are particularly beneficial for StemRx, as the improved research infrastructure, funding support, and focus on clinical translation will help accelerate its growth in cell-based therapies and regenerative medicine. The 2026 budget provides the right momentum to move forward with advanced research and bring innovative treatments closer to patients.
Overall, the Union Budget 2026–27 sets a strong foundation for healthcare innovation and positions India for leadership in advanced medical science.”
Mr. Gautam Khanna, CEO of P.D. Hinduja Hospital & Medical Research Centre, Mumbai, echoed the sentiment on people-centric reforms.
“The Union Budget 2026-27 builds on to the government’s focus on strengthening India’s healthcare system and adopts a broad based and people centric approach. This year the focus has been clearly on improving affordability, expanding workforce, enhancing infrastructure and building emerging care needs.
The announcement to add 1 lakh Allied Healthcare Professionals over the next five years by upgrading existing and establishing new institutions will help in addressing critical gaps in diagnostics, peri-operative care, mental and behavioural health, and rehabilitation. With government targeting to train 1.5 lakh caregivers will go a long way in creating a comprehensive geriatric and allied care system and is timely given India’s increasing elderly population. This futuristic measure will help in easing the lives of our senior citizens and help create necessary infrastructure and workforce to assist them in leading healthy lives.
Hon’ble FM’s proposal to support states in establishing regional medical hubs in partnership with the private sector will give a huge boost to India’s medical tourism industry and strengthen our potential to deliver quality services at scale. These hubs will integrate all medical services with diagnostics, treatment, rehabilitation, education and research under one hub.
The exemption of Basic Customs Duty on 17 drugs and medicines used in cancer treatment alongside the extension of import duty exemptions to drugs, medicines and Food for Special Medical Purposes for seven additional rare diseases is one of the most impactful measures. This will provide much needed financial relief to patients and their families and reduce high out of pocket expenses for long term and lifesaving treatment.
These initiatives and critical announcements will help lay a strong foundation to improve access, affordability, build and skilled workforce. Strengthening trauma care infrastructure by establishing Emergency and Trauma Care Centres across district hospitals and increasing existing capacities is a welcome move however, it would have been more encouraging for further infrastructure development by providing simplified access to long-term financing in smaller towns and rural areas beyond the major urban areas. It will also be exciting to see how the healthcare workforce skilling programs integrate digital healthcare modalities for enhanced access to affordable and quality healthcare services.
Overall, the budget has signaled a balanced approach addressing immediate healthcare needs and at the same time investing in building capacity for the future.”
Wealth Management and Sectoral Growth Outlook
Roopali Prabhu, CIO and Head of Products and Solutions at Sanctum Wealth, pointed to forward-looking strategies amid modest expectations.
“The expectations from this Budget were modest, given subdued growth in income tax collections and the government’s strong commitment to fiscal deficit targets. The emphasis on rare earth minerals, data centers and semiconductors is a forward-looking strategy designed to lay the foundation for the next phase of growth. Announcements related to textile manufacturing and SME support programs are encouraging and could potentially contribute to meaningful employment creation. Any move away from the path of fiscal consolidation could have added to the existing weakness in the rupee. The government’s continued adherence to fiscal discipline, with a FY27 deficit target of 4.3% therefore comes as a relief. We also anticipate further expansion of available REIT/InvITs instruments for investors as the government pursues its objective of monetizing its real estate assets. Overall, there are no major catalysts for the equity market, although select sectors such as pharma, chemicals and textiles have seen some positive announcements.”
Creativity and Enterprise in the Spotlight
Mr. Pratap Jain, Founder and CEO of ChanaJor OTT, celebrated the integration of culture and innovation.
“Budget 2026 shows that creativity and enterprise are now intertwined with India’s growth story. From skill-building to heritage digitization, the government is creating an ecosystem where ideas, culture, and technology come together. For the industry, this is a moment to embrace new opportunities, expand horizons, and help position India as a hub of innovation and creativity on the global stage.”
The Union Budget 2026-27 balances fiscal prudence with bold sectoral investments, drawing widespread acclaim for its vision to empower youth, enhance healthcare access, and fuel manufacturing-led growth toward a developed India.
Last Updated on: Tuesday, February 3, 2026 11:37 am by Business Max Team | Published by: Business Max Team on Tuesday, February 3, 2026 11:37 am | News Categories: News, Economic
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