The Union Budget 2026–27 arrives at a decisive moment in India’s demographic transition. As Population Foundation of India’s population projections, prepared with the International Institute of Migration and Development, show, fertility is declining, ageing is accelerating, and India’s window to reap the demographic dividend will begin narrowing after 2031. In this context, women’s health, safety, and agency are not social sector add-ons but core economic imperatives.
“Women-led development is not a welfare agenda, it is central to India’s economic future. If Budget 2026 does not decisively invest in women’s health, safety, and care systems, we risk missing our demographic opportunity,” said Poonam Muttreja, Executive Director, Population Foundation of India.
The budget raises overall spending from ₹50.63 lakh crore to ₹53.47 lakh crore, or roughly 6%. The gender budget increased by 12% from ₹4.49 lakh crore in 2025–2026 to ₹5.01 lakh crore in 2026–2027. These headline successes, however, conceal more serious structural issues. The majority of funding is still integrated into larger initiatives where it is challenging to monitor the results for women and there is still a lack of accountability.
“When most gender spending is folded into general schemes, women become invisible beneficiaries. In the absence of clear targeting, intent rarely translates into impact,” Muttreja noted.
The overall health allocation rises from ₹95,957.87 crore to ₹1,01,709.21 crore, a slight 6% increase. A comparable 5.81 percent increase is seen in the National Health Mission. However, NHM funding for family welfare decreases from ₹1,536.97 crore to ₹1,524.74 crore, and family welfare capital outlays drop by 1.65 percent. These allotments support outreach, frontline worker training, maternity care, and contraception.
“It is deeply concerning that family welfare allocations are shrinking even as demographic trends show stark regional variation in fertility and unmet need. Reproductive choice cannot be sustained on stagnant or declining budgets,” Muttreja said.
High-end manufacturing and research aspirations are reflected in the Budget’s focus on establishing India as a global biopharma hub through the ₹10,000-crore Bio-Pharma Shakti initiative, new NIPERs, and a national clinical trials network. These investments might create skilled jobs, but they don’t really address the public health systems that women rely on on a daily basis. Although the proposed care ecosystem for geriatric and related services is a welcome recognition of ageing, women will continue to bear a disproportionate share of the burden in households if social care is not also funded.
Childcare and nutrition remain underfunded. Allocations for Saksham Anganwadi and POSHAN 2.0 rise by only 5 percent. This is inadequate given persistent child malnutrition, the growing need for full-day childcare, and the central role Anganwadis play in enabling women’s participation in the workforce.
“Anganwadis are expected to be nutrition centres, preschools, health hubs, and childcare facilities, but they are funded as if care is not integral. Women cannot work if childcare systems remain weak,” Muttreja emphasised.
Women’s safety presents another area of mismatch between rhetoric and resources. While Mission Shakti sees a 14 percent increase, safety and crisis-response services together account for less than 1 percent of the total gender budget. At the same time, allocations for Swachh Bharat Mission–Urban are halved, undermining sanitation and public safety, both critical determinants of women’s health and mobility.
“Gender-based violence is not just a law-and-order issue; it is a public health crisis. Yet funding for shelter homes, counselling, and crisis response remains grossly inadequate,” said Muttreja.
The Budget also overlooks the women who form the backbone of India’s health system. Nearly one million ASHAs and thousands of ANMs continue to work under conditions of low pay, insecurity, and limited professional recognition, even as they shoulder expanding responsibilities.
Cuts to the National Handicrafts Development Programme, from ₹260 crore to ₹205 crore, further weaken women’s livelihoods. Nearly 75 percent of India’s weavers and artisans are women, many of whom need support to access credit, digital platforms, and markets.
“Whether in health, care, safety, or livelihoods, women continue to be asked to do more with less. That is not how economies grow, nor how demographic dividends are realised,” Muttreja said.
Budget 2026 makes clear choices about India’s growth priorities. To truly advance women-led development, future budgets must move beyond incremental increases and make sustained investments in women’s health systems, care infrastructure, safety mechanisms, and economic opportunities, not as charity, but as nation-building.
