Published Feb 01, 2026 | 2:54 PM ⚊ Updated Feb 01, 2026 | 5:39 PM
Representative image.
Synopsis: The Union Budget 2026 unveiled “Biopharma Shakti”, a strategy for health advancement through knowledge, technology, and innovation. The initiative, with a proposed outlay of ₹10,000 crore over five years, aims to position India as a global hub for biopharmaceutical manufacturing.
In the Union Budget 2026, Finance Minister Nirmala Sitharaman unveiled “Biopharma Shakti”, which the government described as a strategy for health advancement through knowledge, technology, and innovation.
The initiative, with a proposed outlay of ₹10,000 crore over five years, aims to position India as a global hub for biopharmaceutical manufacturing. Early reactions from industry experts suggest strong optimism about its potential impact on research, manufacturing, and healthcare accessibility.
Highlighting India’s shifting disease burden, the finance minister said, “India’s disease burden is observed to be shifting towards non-communicable diseases like diabetes, cancer and autoimmune disorders. Biologic medicines are key to longevity and quality of life at affordable costs.”
The initiative will focus on strengthening domestic production of biologics and biosimilars to address these challenges.
The minister outlined plans to establish three new National Institute of Pharmaceutical Education and Research (NIPER) and upgrade seven existing ones. A network of 1,000 accredited clinical trial sites will also be created across India.
She said, “This will build the ecosystem for domestic production of biologics and biosimilars”, ensuring research and manufacturing capabilities meet global standards.
The minister also announced measures to reinforce the Central Drug Standard Control Organisation (CDSCO). She added that the reforms would include “a dedicated scientific review cadre and specialists” to meet international regulatory standards and accelerate approvals.
Rajiv Nath of AiMeD, an umbrella association of indian manufacturers of medical devices, called the announcement a “strong and credible signal of India’s commitment to building a globally competitive life-sciences ecosystem.”
Speaking to South First, he said, “The combination of funding, institutes, and clinical trial networks would address structural gaps in research, innovation, and manufacturing.”
He added that the strengthened CDSCO will ensure regulatory predictability and investor confidence, crucial for India’s $50-billion pharmaceutical industry.
Nath also noted that initiatives such as Weighted R&D Deduction up to 200 percent and expanded Production Linked Incentive (PLI) support for Active Pharmaceutical Ingredients (APIs), biosimilars, and complex generics would accelerate domestic production while reducing import dependence.
According to him, these measures signal a shift from volume-led growth to value- and innovation-driven leadership in India’s pharmaceutical sector. Experts suggest that with deregulation and reduced compliance burdens, India could soon become a trusted supplier of affordable, high-quality biopharmaceuticals globally.
Meanwhile, in a post on X, Kiran Mazumdar-Shaw, Executive Chairperson of Biocon Limited, said, “By placing biopharma among the seven strategic frontier sectors and launching Biopharma Shakti with an outlay of ₹10,000 crore over five years, the Union Budget makes a decisive investment in India’s health and innovation future.”
She noted that as India’s disease burden shifts toward cancer, diabetes, and autoimmune disorders, biologics and biosimilars will be central to improving longevity and quality of life.
The initiative, spanning manufacturing scale-up, global-grade regulation, new NIPER institutions, and a nationwide clinical trials network, can firmly position India as a global biopharma manufacturing hub, she noted.
Meanwhile, Murthy Chavali, CEO, Satya Pharma Innovations said, “This does seem like a bold pivot in a competitive global landscape. Biopharma SHAKTI initiative is a welcome leap toward high-value manufacturing. By pivoting from simple generics to complex biologics, the FM has addressed the ‘missing middle’ of our pharmaceutical innovation. The focus on NIPERs and a network of 1,000 clinical trial sites is encouraging; it addresses the talent bottleneck that has historically meant that there has been minimal innovation in India in the pharma sector.”
“However, an industry veteran’s optimism must be tempered by the global reality. China currently commands nearly 30 percent of the global innovative pipeline, leveraging a decade of state-led and private sector led investment to move far beyond being a ‘fast follower’. Against such a juggernaut, our ₹10,000 crore outlay spread over 5 years is a significant statement of intent, but a modest “starter kit” in the capital-intensive world of biologics, ” he added.
“Success depends entirely on execution. We must ensure the CDSCO can truly meet global approval timelines without getting mired in legacy red tape. If we can marry this funding with genuine regulatory agility, India won’t just be the ‘pharmacy’ but a formidable ‘biotech laboratory’ for the world. It is a vital first step in a long, high-stakes race,” Chavali concluded.
With Biopharma Shakti, India aims to strengthen domestic talent, research, and manufacturing quality. The initiative is expected to boost clinical validation capabilities and attract global investment.
Experts also believe that the programme complements recent free trade agreements with the European Union (EU), European Free Trade Association (EFTA), and the UK, enabling India to expand exports while maintaining high standards for domestic healthcare.
They noted that, if implemented effectively, Biopharma Shakti could mark a significant step toward making India a global leader in biopharmaceuticals.
(Edited by Muhammed Fazil.)
