Transforming India into a Global Biopharma Hub: Budget 2026’s Strategic Vision

Understanding the Biopharma Transition

Biopharma, or biopharmaceuticals, refers to medicines developed using living biological systems such as human cells, microorganisms, or fungi, rather than conventional chemical synthesis. These therapies, including vaccines, monoclonal antibodies, gene therapies, insulin, and advanced oncology drugs, are more complex, targeted, and effective for chronic and life-threatening conditions. This shift has become critical as India’s disease burden increasingly tilts towards non-communicable diseases like diabetes, cancer, and autoimmune disorders, where biologics play a central role in improving longevity and quality of life.

Biopharma SHAKTI: The Centrepiece of Budget 2026

At the heart of this transformation lies the Biopharma SHAKTI initiative, announced by Finance Minister Nirmala Sitharaman with a dedicated outlay of ₹10,000 crore over the next five years. Conceived as a comprehensive national programme, Biopharma SHAKTI aims to build an end-to-end ecosystem for biologics and biosimilars. The initiative focuses on reducing India’s dependence on imported high-value biologic drugs, strengthening domestic manufacturing capabilities, and enhancing global competitiveness with an ambitious target of capturing 5% of the global biopharmaceutical market.

A key component of the programme is regulatory strengthening. The government plans to upgrade the Central Drugs Standard Control Organisation (CDSCO) by creating a dedicated scientific review cadre and inducting specialised personnel, ensuring that India’s approval timelines and regulatory standards align with global best practices.

Strengthening Institutions and Human Capital

Recognising that biopharma is a knowledge- and skill-intensive sector, Budget 2026 places strong emphasis on capacity building. The government has proposed the establishment of three new National Institutes of Pharmaceutical Education and Research (NIPERs), along with the upgradation of seven existing NIPERs. These institutions will act as hubs for advanced research, regulatory science, and industry collaboration, addressing the growing demand for highly trained researchers, scientists, and regulators.

In parallel, the Budget outlines the creation of a robust clinical research ecosystem. Over 1,000 accredited clinical trial sites will be developed nationwide, enabling faster drug development and reinforcing India’s credibility as a preferred destination for ethical, high-quality, and cost-efficient clinical trials for advanced therapies.

Building on a Strong Policy Foundation

The Biopharma SHAKTI initiative is not a standalone effort but builds upon years of sustained policy support. The National Biopharma Mission (NBM), launched in 2017 under the “Innovate in India (i3)” banner with World Bank support, laid early groundwork by focusing on vaccines and biosimilars for critical diseases such as cancer, dengue, HPV, and rheumatoid arthritis. Through BIRAC, it has supported thousands of biotech startups and established a wide network of incubation centres.

This momentum was further strengthened by the Bio-RIDE Scheme, launched in September 2024 with an outlay of ₹9,197 crore, which consolidated multiple biotechnology programmes to focus sharply on biomanufacturing and biofoundries. Complementing this, the BioE3 Policy, approved in August 2024, expanded biotechnology’s role across the economy, environment, and employment, from food security and sustainable agriculture to carbon capture and green growth.

Catalysing Innovation and Industry Confidence

The impact of these initiatives is already visible in India’s growing roster of biopharma success stories. Homegrown startups like Voxel Grids Innovations, which developed India’s first indigenous MRI scanner, and Levim Lifetech, which launched the country’s first biosimilar for Type 2 diabetes at a fraction of imported costs, highlight India’s rising innovation capabilities. India’s development of the world’s first DNA-based COVID-19 vaccine, ZyCoV-D, further underscored its scientific and manufacturing prowess.

Market sentiment has responded positively to Budget 2026’s announcements. Following the Biopharma SHAKTI proposal, stocks of leading pharma companies such as Biocon, Sun Pharma, Dr Reddy’s Laboratories, Torrent Pharma, and Piramal Pharma witnessed gains, with the Nifty Pharma index trading higher on the day of the Budget.

Conclusion: Reinforcing India’s Global Biopharma Ambition

Through Budget 2026 and the launch of Biopharma SHAKTI, India has articulated a clear and long-term vision for its pharmaceutical sector. By aligning policy, capital, institutions, and regulation, the government is pushing the country up the global value chain, from a volume-driven generic producer to an innovation-led biopharma powerhouse. If executed effectively, these measures will not only address India’s evolving healthcare needs but also ensure that the “Pharmacy of the World” remains at the forefront of affordable, advanced, and life-saving medical innovation.