India’s Union Budget 2026 allocates ₹10,000 crore for Biopharma Shakti to build a global biopharma hub with accredited trial sites and stronger research and manufacturing.
India’s Union Budget 2026 allocates ₹10,000 crore for Biopharma Shakti [Photo: X]
Union Budget 2026: In a major push to transform India’s pharmaceutical landscape, the Union Budget 2026‑27 has earmarked ₹10,000 crore for the biopharmaceutical sector over the next five years, Finance Minister Nirmala Sitharaman announced during her Budget speech. The move is aimed at strengthening domestic drug development, clinical research, manufacturing and export competitiveness as part of the government’s broader reform agenda.
Titled ‘Biopharma Shakti’, the initiative seeks to position India as a global leader in biopharma, contributing to healthcare innovation, employment growth and economic resilience. The sector’s rapid expansion has already seen India’s bioeconomy grow significantly in recent years, driven by biotech, vaccines and pharmaceutical exports.
Under the Biopharma Shakti programme, the government is setting aside ₹10,000 crore over five years to build capacity, foster research and develop a robust ecosystem for biopharmaceuticals in India. The allocation will cover areas such as:
A key component of the biopharma push is the creation of a network of accredited trial centres. These sites will help streamline and standardise clinical trials, making the process more efficient and globally competitive.
Accredited clinical trial sites not only improve quality and compliance but also attract global pharmaceutical investments. Faster trials and smoother approvals can lower the time to market for critical drugs and vaccines, directly benefiting patients and researchers alike.
Finance Minister Sitharaman emphasised that the government’s reforms are designed to accelerate growth and productivity in key sectors. “The government has undertaken comprehensive reforms for accelerating growth, boosting productivity,” she said in her speech. “More than 350 reforms have been rolled out recently. The reform express is well on its way.”
Industry bodies have long urged the government to strengthen support for the pharmaceutical and biotech sectors. Many companies have called for enhanced tax incentives for research and development, particularly to promote drug discovery, biologics and biosimilar production.
India’s bioeconomy has expanded rapidly over the last decade, moving from a modest size to a major contributor to the national economy. The sector encompasses biopharmaceuticals, bioenergy, biotech agriculture, and research services.
Within this broader context, biopharma remains a key segment. With India supplying a significant share of global vaccine requirements, the country already commands a strong position in the global pharmaceutical supply chain. Continued investments in this space could cement this position and expand export markets.
The budget outlay is likely to generate new employment opportunities, especially in research, clinical trials, manufacturing and regulatory services. By institutionalising a larger network of trial sites and manufacturing clusters, the initiative may also spur skill development in cutting‑edge biopharma technologies.
This could benefit researchers, lab technicians, clinical professionals and data scientists, aligning with the government’s vision of positioning India as a knowledge economy.
While the biopharma allocation focuses on larger infrastructure and industry goals, the Budget 2026 has also shown support for innovation and startups in other areas. Past budgets introduced ₹10,000 crore‑plus funds to boost startups, enhancing access to early‑stage capital and venture ecosystems.
Similar support structures for biotech startups could follow, encouraging entrepreneurs to enter life sciences innovation and build globally competitive firms from India.
With healthcare demand rising globally and advanced therapies reshaping patient care, India’s strategic push into biopharmaceuticals comes at an opportune time. Allocating ₹10,000 crore signals the government’s commitment to turning India into a global biopharma powerhouse, while also fostering research, innovation and economic resilience.
If the initiatives succeed, India could not only expand its medical manufacturing footprint but also create a favourable environment for cutting‑edge research and high‑value exports in the decades to come.
