Union Budget 2026-27 backs caregivers, allied health staff to expand healthcare capacity

As India grapples with a rising burden of chronic diseases, an ageing population, and growing demand for long-term care, the Union Budget 2026–27 aims to address the shortage of trained caregivers and allied health professionals.
The government said it would seek to expand healthcare capacity by strengthening the workforce and pushing care delivery outside hospitals, particularly in geriatric and allied health services.

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“A strong care ecosystem, covering geriatric and allied care services will be built,” Finance Minister Nirmala Sitharaman said while presenting the Union Budget in the Parliament on Sunday. She announced that National Skills Qualifications Framework (NSQF)-aligned programmes would be rolled out to train multi-skilled caregivers combining core care skills with allied capabilities such as wellness, yoga and the operation of medical and assistive devices. “In the coming year, 1.5 lakh caregivers will be trained,” she said.

The Budget also proposed a significant scale-up of allied health professionals, a segment seen as critical to easing pressure on doctors and hospitals. “Existing institutions for Allied Health Professionals (AHPs) will be upgraded and new AHP Institutions established in private and government sectors,” Sitharaman said. The initiative will span 10 disciplines, including optometry, radiology, anaesthesia, OT technology and applied psychology and behavioural health, and is expected to add 1 lakh AHPs over the next five years.

According to the Ministry of Health & Family Welfare’s National Health Workforce Accounts (NHWA), India currently has about 12–13 lakh allied health professionals across categories such as lab technicians, radiographers, physiotherapists and OT technicians. However, workforce assessments by the ministry and the World Health Organization (WHO) suggest that the country requires at least 25–30 lakh allied health professionals to meet current and projected demand, implying a shortfall of over 10 lakh workers.

The pressure on the healthcare workforce has intensified as care needs become more long-term. National Health Accounts data show that non-communicable diseases now account for over 55% of India’s total disease burden, increasing the demand for outpatient care, rehabilitation and follow-up services rather than one-time hospitalisation.

Demographic trends are adding to this strain. Government population projections show India has over 14.9 crore people aged 60 years and above, a number expected to cross 19 crore by 2031, sharply raising the need for geriatric care, home-based services and long-term support.

Health sector experts have also pointed to structural imbalances in the workforce. While India has roughly one doctor per 1,500 people, close to the WHO’s benchmark, the ratio of nurses and allied health professionals to doctors remains significantly below recommended levels, according to WHO and MoHFW assessments. This has been flagged as a key constraint, particularly in Tier II and Tier III cities where access to specialist doctors is limited.

Strengthening the caregiver and allied health workforce is expected to help bridge these gaps, reduce pressure on hospitals and support the expansion of community-based care across the country.

Anuj Chahal, Founder and CEO of Maverick Simulation Solutions, said the Union Budget 2026–27 marks a decisive push towards building India’s healthcare workforce at scale. “The Budget takes a clear step towards strengthening India’s healthcare talent base by combining a large expansion in medical seats with targeted skilling of caregivers and allied health professionals. This is not just about adding hospitals, but about building the human foundation required for a resilient, Viksit Bharat that can serve both domestic and global healthcare needs,” he said.

He added that the proposal to add 10,000 medical seats in the current year and 75,000 seats over the next five years addresses the growing demand for doctors, specialists and skilled healthcare workers, while focused skilling initiatives for caregivers and allied professionals will strengthen frontline healthcare delivery across urban and rural India.