Union Finance Minister Nirmala Sitharaman announces the Union Budget 2026–27 on 1^st February, 2026. She announced a series of measures aimed at positioning India as a global biopharma hub.

Key initiatives include the launch of the Biopharma Shakti programme with an outlay of INR 10,000 crore over next five years to strengthen research, innovation and manufacturing capabilities, including building three new National Institutes of Pharmaceutical Education and Research (NIPERs) and upgrading the seven existing ones.

She further said that Semiconductor Mission 2.0 will prioritise the development of equipment and materials built on end-to-end Indian Intellectual Property (IP)

The finance minister further announced three dedicated chemical parks along with setting up three new All India Institutes of Ayurveda (AIIAs), upgrading Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homeopathy (AYUSH) pharmacies as well as the World Health Organisation (WHO) global traditional medicine centre in Jamnagar.

The announcements underscore the government’s push to deepen industry–research linkages, enhance regulatory capacity and scale up India’s global competitiveness in pharmaceuticals and allied sectors.

Industry experts find the budget strong and positive.

Biopharma Shakti Reinforces India’s Atmanirbhar Biopharma Push: Shreehas Tambe, CEO and MD, Biocon Biologics

Biopharma Shakti with an outlay of INR 10,000 crore is a well-timed and much-needed step, especially when seen alongside the earlier INR 1 lakh crore commitment announced in November 2025, to research, development and innovation. Together, these measures clearly signal the government’s intent to strengthen India’s biopharmaceutical capabilities and catalyse innovation-led growth. The acknowledgement that non-communicable diseases such as cancer, diabetes and autoimmune disorders are now the dominant healthcare challenge is important, as is the focus on complex therapies of biologics through affordable biosimilars as the new standards of care. Encouraging investment in advanced manufacturing, building global scale, and strengthening regulatory capacity through a dedicated scientific review cadre at CDSCO are all critical to meet global benchmarks. Equally transformative is the emphasis on academic research, skill development, training and clinical infrastructure through new and upgraded NIPERs and accredited trial sites. These steps reinforce Atmanirbhar Bharat while positioning India as a credible global biopharma hub delivering affordable, high-quality complex therapies at scale. At Biocon, we are fully ready to support India’s march to be a leader in biopharma.

Budget 2026 Signals Innovation-Led Push for India’s Biopharma Sector: Dr Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD)

The union budget 2026 sends a strong and credible signal of India’s commitment to build a globally competitive lifesciences ecosystem. The announcement of Biopharma Shakti with an INR 10,000-crore outlay over five years is a landmark step towards positioning India as a global biopharma manufacturing hub, particularly in biologics and biosimilars, which are critical for improving longevity and quality of life at affordable costs.

The proposed creation of a biopharma-focused network, establishment of three new NIPERs, upgradation of seven existing institutes and a nation-wide network of 1,000 accredited clinical trial sites will significantly strengthen India’s research, talent and clinical validation capabilities. These measures address long-standing structural gaps across the innovation-to-manufacturing continuum.

Equally important is the Budget’s emphasis on strengthening CDSCO through dedicated scientific review capacity, domain specialists and time-bound approvals, which is essential for regulatory predictability, global alignment and investor confidence.

For India’s USD 50-billion pharmaceutical industry, which contributes nearly 2.5 percent to Gross Domestic Product (GDP), this budget reinforces the shift from volume-led growth to value- and innovation-driven leadership. Complementing these initiatives with restoration of weighted R&D deduction up to 200 percent and expansion of Public-Linked Incentive (PLI) support to advanced modalities, APIs, biosimilars and complex generics would further accelerate domestic manufacturing, reduce import dependence and position India as a trusted global supplier of high-quality, affordable biopharmaceutical solutions. In the past, such incentives were at times also shared by the biomedical devices and medical equipment. We look forward to continuity of reforms to make manufacturing competitive by the assurance given by FM on deregulation and reduction of regulatory compliance burden so that we can become globally competitive and take advantage of the recent FTAs with EU, EFTA & UK.

Biopharma SHAKTI Vital for Affordable Innovation: Ritesh Shah, Joint Managing Director, Anuh Pharma

Biopharma is critical to the future of healthcare, as biologics and biosimilars are increasingly central to the treatment of chronic and complex diseases such as cancer, diabetes and autoimmune disorders. For India, sustained investment in biopharma is essential to ensure affordable access to advanced therapies, reduce import dependence and strengthen healthcare resilience. The Biopharma SHAKTI initiative is timely and well-conceived. While the proposed INR 10,000 crore outlay and addition of new NIPERs are positive, effective collaboration between government, NIPERs and industry is crucial. CDSCO must play a highly responsible role to enable globally aligned, predictable approvals. Given the long gestation and capability gaps in biopharma, targeted government support is also needed to encourage meaningful participation by small and medium enterprises.

Biopharma Shakti Boosts Innovation, Access and Holistic Healthcare: Dr Sujit Paul, Group CEO, DavaIndia

The announcement of Biopharma Shakti with an outlay of INR 10,000 crore is a decisive step towards strengthening India’s biopharma ecosystem and addressing the country’s evolving disease burden. As lifestyle and chronic conditions such as diabetes, cancer and autoimmune disorders continue to rise, this focused investment will accelerate innovation, indigenous manufacturing and affordable access to advanced therapies. Equally significant is the government’s emphasis on traditional and integrative healthcare through the announcement of three new AIIAs, the upgradation of AYUSH pharmacies and drug testing laboratories to strengthen certification standards, and the enhancement of the WHO Global Traditional Medicine Centre in Jamnagar. Together, these measures create a holistic healthcare framework that combines modern biopharma with validated traditional systems. At DavaIndia, we view this as a catalyst for improving access to quality, affordable medicines while reinforcing India’s position as a global healthcare hub driven by research, resilience and patient-centric growth."