Ayush Union Budget 2026

Ministry of AYUSH has been allocated Rs. 4408.93 Crores in the Union budget for the fiscal year 2026-27, increasing the allocation by 20% from F.Y. 2025-26 budget. Setting up of three new All India Institutes of Ayurveda (AIIA), upgrading of WHO Traditional Medicine Centre in Jamnagar and upgrading of AYUSH pharmacies and drug testing labs has also been proposed. [1]

Everybody in AYUSH sector appears elated by the apparent 20% rise in the AYUSH budget allocation in FY 2026-27. However, in this self-congratulatory mode, there is a dire need to analyse the contents of this budget which necessitate a through introspection by Ayurveda academia, researchers and professionals.

To start the analysis of this Rs. 4408.93 Crores budget allocation, let us cast a look at the actual gainers and losers in the AYUSH sector. Being a principal player in AYUSH sector this analysis is limited to Ayurveda. The sectors of Ayurveda are divided into Academics, Research, Health service and Industry for the convenience of this analysis.

Academics

Institute of Training and Research in Ayurveda (ITRA) and All India Institute of Ayurveda (AIIA) both purely academic, and National Commission of Indian Systems of Medicine (NCISM) a regulatory body; appear in the budget representing academics in Ayurveda. ITRA is found facing 20% reduction downscaling the budget from Rs. 279.24 Cr (2025-26) to Rs. 219.05 Cr. (2026-27). AIIA Delhi including Goa also faces 11.75% decline in the budget from Rs. 306.20 Cr (2025-26) to Rs. 270.20 Cr (2026-27). NIA along with National institutes NEIAH, Shilong and NEIFM, Passighat, and Rashtriya Ayurveda Vidyapeeth (RAV) appear covered under other autonomous bodies in the budget.

NIA with other autonomous bodies shows a combined rise closing to 33% from Rs. 740.70 Cr (2025-26) to Rs. 990.15 Cr. (2026-27). Considering the initial allocation of Rs. 783.94 Cr in 2025-26 budget, the actual gain becomes 26.3%. NEIAH and NEIFM are building their basic infrastructures, which needs appropriate funding. However, all these institutes together failed to utilize 5.5% of their initially allocated budget FY 2025-26. Gain or loss assessment of individual NIA in this budget was not possible, which is essential for this analysis.

Research

Central Council for Research in Ayurvedic Sciences (CCRAS), the sole research organization appears to be a marginal gainer with 1% rise in the budget from Rs. 518.85 Cr (2025-26) to Rs. 524. 05 Cr (2026-27).

AYURGYAN, a central sector research scheme has three components: (i) Capacity Building & CME, (ii) Research & Innovation, and (iii) Ayurveda Biology Integrated Health Research is observed gaining substantially with 32.24% rise from Rs. 37.81 Cr (2025-26) to Rs. 50 Cr (2026-27). However, 32% of similar budget of Rs. 50 Cr allocated for this scheme initially in FY 2025-26 remained unutilized. Considering these figures, AYURGYAN scheme becomes neither a gainer or a loser in FY 2026-27 budget allocation.

Health care

National AYUSH Mission (NAM)
National AYUSH Mission (NAM) is the major player in the AYUSH health care sector, appearing in the Union AYUSH budget. However, the Mission is operated through states under Centrally sponsored scheme. NAM is a major gainer getting 66% rise from Rs. 780.96 Cr (2025-26) to Rs. 1400 Cr (2026-27). However, the scheme reported failure in spending more than 38% of its budget allocated in FY 2025-26. Initial allocation in FY 2025-26 was Rs.1275 Cr. The actually spent amount was Rs. 780.96 Cr. with unspent amount of Rs. 387.48 Cr. at the end of fiscal year 2025-26. Thus, considering the initial allocation of Rs. 1275 Cr in FY 2025-26, the actual rise in the FY 2026-27 budget is close to only 10%.

Ayurswasthya Yojana
Ayurswasthya Yojana, a central sector scheme consists of two main components 1. Ayush and Public Health (PHI), and 2. Upgradation of facilities to Centre of Excellence (CoE). Only Rs. 46.73 Cr of the initial allocation of Rs. 62.60 Cr was spent, reporting failure to spend 25.35% (Rs. 15.73 Cr) in fiscal year 2025-26. The current Union budget (FY 2026-27) again shows allocation of Rs. 62.60 Cr for this scheme. It equals the initial allocation in 2025-26. Thus, the scheme ultimately emerges neither as a gainer nor a loser in this budget.

AYUSH Industry

National Medicinal Plants Board (NMPB), Pharmacopeia Commission of Indian Medicine and Homeopathy (PCIM&H), AYUSH Oushadhi Gunvatta evum Uttpadan Samvardhan Yojana (AOGUSY), Central sector scheme for Conservation, Development and Sustainable Management of Medicinal Plants (CD&SMMP); are the organizations and the schemes, directly or indirectly related to the AYUSH industry in this budget. Considering the initial allocations in the fiscal year 2025-26, all these units appear neither gaining nor losing in the FY 2026-27 budget. PCIM&H receives an insignificant gain of Rs. 1.00 Cr.

The fiscal year 2025-26 recorded failure to spend total Rs. 321.08 Cr amounting to 8% of the initial total allocation of Rs.3992.90 Cr. for Ministry of AYUSH in FY 2025-26. Considering the initial allocation Rs. 3992.90 Cr. in the fiscal year 2025-26, ultimate gain emerges to be not 20% but only 9.74% in the AYUSH budget FY 2026-27.

If AYUSH service needs to be improved and industry growth to be promoted; education and research are the two sectors which need strongest government support in terms of finance and administration. The FY 2026-27 Union AYUSH budget appears disappointing in this respect.

In education, ITRA and AIIA both flagship Ayurveda institutes are found facing 20% and 11.75% decline in their respective budgets for the fiscal year 2026-27. No comparison can be made but against this decline in academic budgets of premier Ayurveda institutes, Ayurveda fraternity should think over and take a look at All India Institutes of Medical Sciences (AIIMS) and Postgraduate Institute of Medical Education and Research, Chandigarh; respectively receiving 5.01% and 3.59% rise in the Union budget FY 2026-27 over RE of FY 2025-26.

This moment also deserves a look at the budget allocation of Ministry of Education which has earned a rise of 8.3% in school education and 11.3% increase in the higher education budgets for FY 2026-27. [2] Setting up of a high-powered standing committee on education, employment and enterprise to map the gaps in skills, identify high employment service sectors; has also been proposed. [3] An independent high-power committee on AYUSH education comprising experienced academia having scientific vision and understanding of the current health requirements, is a dire need of the hour.

In research sector, CCRAS, the only research organization parallel to Indian Council of Medical Research (ICMR), has received a meagre 1% rise in its budget. AYURGYAN, the central sector research scheme is neither a gainer or a loser in 2026-27 budget allocation. On the other side, the allocation for ICMR, New Delhi, has been enhanced to Rs. 4,000 crore in BE 2026–27, registering a 26.98% rise over the revised estimates of FY 2025–26 of Rs. 3,150.50 crore. [4] This appears more glaring and pronounced on the background of allocation of Rs. 4821 Cr. (2026-27) with 23% rise on the RE (2025-26) in the budget of the Department of Health Research, Ministry of Health & F.W. [5] This clearly puts a question mark on academic and research activities in Ayurveda.

In the health services sector NAM and Ayurswasthya scheme are allotted major amount in the budget FY 2026-27. Out of Rs. 4408.93 Cr, NAM, the centrally sponsored scheme has been allocated Rs.1300 Cr amounting to 29.5% of the total budget. The scheme is consistently reporting failure to spend the allocated budget year after year. Failure in spending more than 38% of its budget allocated in FY 2025-26 was reported. Being a centrally sponsored scheme, the implementation of the scheme is totally dependent on the states. The states with few exceptions hardly show interest in AYUSH services. Ayurswasthya Yojana reported failure to spend 25.35% of the allocated budget in FY 2025-26.

In AYUSH industry sector, the organizations NMPB, PCIM&H and AOGUSY, and the central sector scheme CD&SMMP; directly or indirectly related to the AYUSH industry, appear neither gaining nor losing in the FY 2026-27 budget. In this respect announcement of Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge and Innovation), a Rs. 10,000 Crore government initiative needs to be looked at. The strategic mission aims at fostering a robust domestic production ecosystem for affordable, high-quality medicines directly addressing the nation’s shifting disease burden toward chronic non-communicable conditions, which is considered as its forte by Ayurveda fraternity. Still, the Biopharma SHAKTI initiative nowhere considers Ayurveda in its layout. The initiative also includes an overhaul of the Central Drugs Standard Control Organization (CDISCO), as a comprehensive regulatory authority. [6] The initiative or any part of the Union AYUSH budget doesn’t take any cognizance of regulation of quality control of Ayurvedic drugs. Although, the Ayurveda drug industry is in dire need of overhaul of their regulatory authorities for the quality control of their drugs.

To summarise the analysis of Union AYUSH budget FY 2026-27, being persistent reporters of failures, the gainers do not deserve their gains in the allocated budget. Whereas, the losers being persistent fund cravers, don’t deserve their losses in allocation of budget in FY 2026-27. Failure of utilization of allotted budget appears to be a major issue in the AYUSH health service sector. The two schemes NAM and Ayurswasthya are centrally sponsored. Both the schemes report failure in spending the allotted budget year after year. Still major share of the budget is allotted to this sector, which remains unutilized at the end of every financial year. These two schemes are very important schemes designed to take AYUSH health services to the doorstep of every countryman. However, state governments are completely inert or rather reluctant to utilize these services.

On the other side, no rise or marginal rise in the budget allocation is given to education, research and industry related schemes and AYUSH regulatory bodies in the FY 2026-27 budget allocations. These sectors always face shortage of funds. Ministry should consider recycling of funds from NAM and Ayurswsthya schemes to the education, research and industry sectors, till a way out is found to make proper utilization of budget allotted to the schemes related to AYUSH health services.

To make a global mark, in addition to adequate budget allocations, appropriate ambience needs to be created to attract high intellect, experienced and visionary experts in education and research organizations. Taking proactive role, the advisory bodies of these organization need to ensure that globally acceptable quality education is imparted and quality research is conducted in the academic and research organizations.

Regarding drug quality, to meet the rigorous global quality standards, PCIM&H needs to be strengthened financially and technically. Specialized cadre of scientific reviewers needs to be hired, employed and nominated as feasible in drug standardization activities of PCIM&H.

To conclude the analysis, the FY 2026-27 AYUSH Union budget, although prima facie appears assuring growth and development of AYUSH. It nowhere addresses the burning issues responsible for obstructing such progress in any of the four AYUSH sectors: education, research, health service and industry. On the contrary, the budgetary provisions appear to continue the running of the show as it was running through all the yester years. The only difference, a little amusement is being added every year for the appeasement of the masses.