New Delhi [India], February 1 : Presenting the Union Budget 2026-27 in Parliament, Union Finance Minister Nirmala Sitharaman announced the government's plan to establish NIMHANS 2.0, a premier mental health institute in North India, to address gaps in mental health infrastructure. She also announced the duty exemption on cancer drugs in the Union Budget.
She said the move reaffirms the Centre's commitment to mental health care and trauma services. "Reaffirming our commitment to mental health and trauma care, there are no national institutes for mental health care in North India. We will therefore set up a NIMHANS 2.0 and also upgrade national mental health institutes in Ranchi and Tezpur as regional apex institutions," Sitharaman said while presenting the Budget in Lok Sabha today.
The Finance Minister also announced measures to strengthen emergency and trauma care facilities nationwide. She noted that medical emergencies often impose unexpected financial burdens on families, particularly the poor and vulnerable. "We will strengthen and increase these capacities by 50 per cent in district hospitals by establishing emergency and trauma care centres," she said.
In a major relief for cancer patients, the Finance Minister announced the exemption of basic customs duty on 17 cancer-related drugs and medicines. She also said that seven additional rare diseases would be added to the list of diseases eligible for exemption from import duty on personal imports of drugs, medicines, and food intended for special medical purposes.
"To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines. I propose also to add 7 more rare diseases for the purposes of exempting import duties on personal import of drugs, medicines and food for special medical purposes used in their treatment," she said.
In addition, Sitharaman said the government has accepted the 16th Finance Commission's recommendation to retain the vertical share of devolution to states at 41 per cent. She announced an allocation of Rs 1.4 lakh crore to states for the 2026-27 financial year.
Sitharaman earlier announced the establishment of three new All India Institute of Ayurveda to meet global demand for Ayurvedic medicine. Presenting the Union Budget 2026-27 in Parliament, the Finance Minister said that Ayurveda has gained global acceptance post-COVID-19.
She said, "Ancient Indian Yoga, already respected in all parts of the world, was given a mass global recognition when Prime Minister Narendra Modi took it to the UN. Post COVID, Ayurveda gained a similar acceptance and recognition. Exporting high-quality Ayurvedic products helps farmers grow the herbs and the people who process them. To meet growing global demand, a few more steps are being taken. I propose three new All India Institutes for Ayurveda."
All India Institute of Ayurveda in New Delhi was established as a Centre of Excellence for Ayurveda Tertiary Health Care. FM Sitharaman also proposed to upgrade AYUSH pharmacies and the WHO Global Traditional Medicine Centre (GTMC) in Jamnagar.
"To upgrade AYUSH pharmacies and drug testing labs for higher standards and make available more skilled personnel. Three, upgrade the Global Traditional Medicine Centre in Jamnagar," she added.