The Union Budget 2026–27 marks a decisive shift in India’s pharmaceutical strategy by placing biopharma and biologic medicines at the centre of healthcare, innovation, and manufacturing policy. With the launch of Biopharma SHAKTI, backed by a substantial public outlay, the Budget aligns with the Government of India’s long-term vision of transforming the country into a leading global biopharma hub and capturing 5% of the global biopharmaceutical market.
Against the backdrop of rising non-communicable diseases and growing global demand for biologics and biosimilars, the Budget positions biopharma as a future-facing, high-value sector critical for both public health outcomes and economic growth.
SHAKTI: A ₹10,000 Crore National Push
A cornerstone of the Budget is the announcement of Biopharma SHAKTI, a dedicated national initiative with an outlay of ₹10,000 crore over five years. The programme aims to strengthen India’s end-to-end ecosystem for biologics and biosimilars, supporting domestic research, development, and manufacturing of high-value biopharmaceutical products.
The initiative seeks to:
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Reduce import dependence in advanced therapies
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Enhance India’s competitiveness in global biologics supply chains
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Support domestic production of vaccines, biosimilars, biologics, and gene-based therapies
By linking manufacturing scale with innovation and regulatory efficiency, Biopharma SHAKTI signals India’s intent to move decisively up the pharmaceutical value chain.
Strengthening Human Capital and Research Infrastructure
Recognising that biopharma is talent- and knowledge-intensive, the Budget proposes:
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Three new National Institutes of Pharmaceutical Education and Research (NIPERs)
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Upgradation of seven existing NIPERs
These steps aim to address the growing need for highly specialised human resources across biopharma research, manufacturing, regulation, and quality assurance. Together, they are expected to create a strong pipeline of scientists, researchers, and regulatory professionals essential for a globally competitive biopharma ecosystem.
Building a Nationwide Clinical Research Ecosystem
To accelerate innovation and global confidence, the Budget proposes the development of over 1,000 accredited clinical trial sites across India. This will significantly enhance India’s capacity to conduct advanced clinical trials for biologics and biosimilars, positioning the country as a preferred destination for ethical, high-quality, and cost-effective clinical research.
A robust clinical trial ecosystem will shorten development timelines, reduce costs, and improve access to advanced therapies for Indian patients.
Regulatory Strengthening for Global Credibility
The Budget also focuses on strengthening the regulatory framework for biologics by enhancing the capacity of the Central Drugs Standard Control Organisation (CDSCO) through induction of specialised scientific and technical personnel.
The objective is to:
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Improve regulatory efficiency
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Align approval timelines with global benchmarks
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Enable faster and more rigorous evaluation of complex biopharmaceutical products
This regulatory credibility is critical for India’s ambitions in global biologics exports and partnerships.
Why the Budget Push Matters
The Budget integrates manufacturing, skills, research, and regulation into a single, coherent framework. This signals a clear policy intent to transition India from being primarily a cost-efficient generic medicines producer to a global hub for innovation-driven, high-quality biopharmaceuticals.
At the same time, it strengthens domestic access to advanced and affordable biologic therapies, particularly important as India’s disease burden shifts towards cancer, diabetes, autoimmune and metabolic disorders.
Building on a Strong Policy Foundation
Biopharma SHAKTI builds upon earlier government initiatives such as the National Biopharma Mission (Innovate in India – i3), BIRAC-led innovation programmes, PLI schemes for pharmaceuticals, Bulk Drug Parks, PRIP (Promotion of Research and Innovation in Pharma-MedTech), and the BioE3 and Bio-RIDE frameworks.
Together, these initiatives have:
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Supported thousands of bio-based startups
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Built shared research and incubation infrastructure
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Strengthened industry–academia collaboration
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Advanced indigenous vaccines, diagnostics, biosimilars, and medical devices
The Budget consolidates and scales this ecosystem for the next phase of growth.
Conclusion
The Union Budget 2026–27 represents a strategic inflection point in India’s bio-pharma journey. Through Biopharma SHAKTI and complementary reforms, the Government has laid out a coordinated roadmap spanning research, talent, manufacturing, clinical trials, and regulation.
As global demand for biologics accelerates and healthcare shifts towards precision and preventive therapies, India is positioning itself not just as a supplier of affordable medicines, but as a global leader in high-value, innovation-driven biopharmaceuticals. The Budget’s integrated approach strengthens the foundation for long-term health security, economic resilience, and global leadership, firmly aligning with the vision of a Viksit Bharat.
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Source: PIB
