By: IPP Bureau
Last updated : February 01, 2026 7:39 pm
The Union Budget makes a clear and timely choice by placing biopharma at the centre of India’s next manufacturing wave
The pharmaceutical industry has strongly welcomed the Union Budget 2026-27, hailing it as a "landmark intervention" that signals India's shift from being a volume-driven manufacturer to a global innovation and biopharma hub. The centerpiece of the budget is the Rs. 10,000 crore Biopharma Shakti initiative, which industry leaders have praised for its focus on biologics, biosimilars, and strengthening the domestic research ecosystem.
Industry's Comments on Budget:
Namit Joshi, Chairman, Pharmexcil
The Union Budget 2026–27 reinforces the kartavya of India’s pharmaceutical exporters to sustain the country’s leadership as the pharmacy of the world. Pharma exports today are a critical contributor to India’s trade balance, foreign exchange earnings, and global health security. And this is driven largely by MSMEs that form the backbone of the export ecosystem. The announcement of the Bio Pharma SHAKTI Project marks a historic and strategic shift in India’s pharmaceutical journey - from being a global leader in generics to emerging as a global bio-pharma manufacturing powerhouse. With a committed outlay of Rs. 10,000 crore over the next five years, the initiative is designed to build an end-to-end ecosystem for MSMEs t0 develop and manufacture biologics and biosimilar drugs, which represent the fastest-growing segment of the global pharmaceutical market. Reforms on SEZ and GST rates clearly articulate the Union Government’s kartavya of creating globally competitive ‘Champion MSMEs’, and for the pharmaceutical sector, these reforms have direct implications for manufacturing strength and export leadership. Operational flexibility for SEZ-based manufacturers through a concessional DTA clearance window will strengthen capacity utilisation, cash flows, and supply chain resilience.
For pharma companies, this provides critical flexibility to manage regulatory delays, inventory build-up and working-capital pressures, particularly in complex segments like biopharma and biosimilars. Pharmexcil believes this integrated approach will enable exporters to scale responsibly by directly addressing the operational efficiency, liquidity, and global competitiveness of medium and small pharmaceutical manufacturers. Additionally, a predictable, science-driven and globally benchmarked regulatory framework is foundational for sustaining India’s credibility in regulated markets and increasingly define export value rather than volumes. The Budget’s emphasis on strengthening the Central Drugs Standard Control Organisation (CDSCO) through a dedicated scientific review cadre and domain specialists is a critical structural reform for India’s export ambitions.
Equally significant is the announcement to expand the National Institutes of Pharmaceutical Education and Research (NIPER) network from seven to ten institutes. This strategic capacity addition will directly augment India’s talent pipeline in regulatory science, quality assurance, biologics manufacturing and clinical research—areas where MSME exporters often face structural skill constraints. These measures put together an integrated ecosystem that enables pharmaceutical exporters to institutionalise robust Quality Management Systems (QMS) while maintaining cost competitiveness. A robust domestic bio-pharma base will allow Indian companies - especially MSMEs and mid-sized players- to move up the value chain, access regulated global markets and compete in high-value segments traditionally dominated by a few advanced economies.
By strengthening critical enablers such as research infrastructure, clinical trial capacity, regulatory capability, skilled manpower, and advanced manufacturing facilities, Bio Pharma SHAKTI aims to significantly reduce India’s dependence on imports for complex biologic therapies. This is particularly vital in the context of rising non-communicable diseases such as cancer, diabetes, and autoimmune disorders, where biologics are becoming the standard of care. Pharmexcil believes this budget creates the right conditions for pharma exporters to scale responsibly, deepen market access and reinforce India’s commitment of supplying affordable, quality medicines to the world - cementing India’s position at the forefront of the next phase of global pharmaceutical innovation.
Dr. Sharvil Patel, Managing Director, Zydus Lifesciences
The thrust on lifesciences is a welcome step as the Indian lifesciences sector looks at building capabilities for leadership and growth in the future. The Biopharma Shakti programme heralds a long-term vision that can catapult India to the next orbit of growth. The focus on upgrading NIPERs and strengthening the talent pipeline, benchmarking regulatory infrastructure to global standards, creating a network of over a thousand accredited India Clinical Trials Sites, are all steps in the right direction. Exempting 17 cancer drugs and 7 rare disease drugs from customs duty will greatly improve patient access. The budget 2026 has touched upon the important pillars of accessibility, affordability and patient-centricity that are an urgent need.
Sheetal Arora, Promoter & CEO, Mankind Pharma
The Union Budget makes a clear and timely choice by placing biopharma at the centre of India’s next manufacturing wave, alongside other frontier sectors. As India’s disease burden shifts towards diabetes, cancer, and autoimmune disorders, and advanced NCD therapies gain wider adoption globally, the focus on biologics and biosimilars is both relevant and necessary. The Bio Pharma Shakti initiative recognises that longevity, quality of life, and affordability will define healthcare outcomes going forward.
The Finance Minister, Nirmala Sitharaman, has reinforced the Viksit Bharat vision through a Rs. 10,000 crore commitment to build a strong domestic biopharma ecosystem, strengthen institutions, upgrade the Central Drugs Standard Control Organization to global standards, and enable faster, predictable approvals. The full BCD exemption on 17 cancer drugs and targeted relief for rare diseases will further improve patient access while supporting innovation in high-need areas.
Over the coming years, the alignment of these reforms with the evolving European Union–India trade framework will help Indian pharma move from scale to leadership, attract global investment, and strengthen India’s position as a trusted manufacturing and innovation partner in advanced therapies.
Shreehas Tambe, CEO & MD, Biocon Biologics
Biopharma SHAKTI with an outlay of Rs. 10,000 crore is a well-timed and much-needed step, especially when seen alongside the earlier Rs. 1 lakh crore commitment announced in November 2025, to research, development and innovation. Together, these measures clearly signal the government’s intent to strengthen Bharat’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 meeting 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.
Swapnil Shah, Managing Director, Senores Pharma
The Union Budget 2026’s BioPharma Shakti marks a shift from building scale to deepening scientific expertise in India’s pharmaceutical sector. The Rs. 10,000 crore investment over five years, focused on strengthening NIPERs, expanding clinical trials, and enabling faster, science-based regulation, addresses key barriers to innovation in biologics and biosimilars. As the need for medicines that cater to rising rates of diabetes, cancer, and autoimmune disorders grows globally, this initiative is both timely and essential.
These measures can accelerate development, boost domestic manufacturing, reduce import reliance, and help retain top research talent. With transparent implementation and strong public–private collaboration, BioPharma Shakti can enhance India’s global standing in advanced therapies and improve patient access to affordable, life-changing medicines.
Ashok Nair, Managing Director, RPG Life Sciences
Biopharma Shakti is a strong and timely signal that India wants to scale up capabilities in biosimilars and compete more confidently in global markets. The Budget proposes an outlay of ₹10,000 crore over the next five years to build the ecosystem for domestic production of biologics and biosimilars.
What makes this announcement practical, not just aspirational, is the focus on enabling infrastructure - a biopharma‑focused network with three new NIPERs, upgrades to seven existing NIPERs, a network of 1,000+ accredited clinical trial sites, and strengthening the CDSCO to meet global standards and improve approval timelines.
For RPG Life Sciences, the value will come from improved ecosystem readiness, especially clinical‑trial output and predictable regulatory timelines. These enablers can potentially accelerate market entry and expand patient access, subject to effective and timely implementation.
Arushi Jain, Director, Akums Drugs & Pharmaceuticals
We see the Union Budget 2026 as a very encouraging step for the future of healthcare and biopharma in India. It creates the kind of stable, long-term ecosystem the industry needs to plan boldly and invest with confidence. With the Rs 10,000 crore Biopharma Shakti programme, stronger research, expanded clinical trial networks, and more robust regulatory systems, the budget clearly puts innovation and quality manufacturing at the heart of the national agenda. For Akums, this gives us the confidence to deepen our R&D pipeline, scale up world-class capabilities and bring advanced therapies to patients more quickly and affordably.
We also welcome the emphasis on traditional medicine with the proposal to set up three new All India Institutes of Ayurveda, alongside upgrades to AYUSH pharmacies and drug testing labs, which will strengthen certification standards and make Ayurveda more accessible across the country. When combined with wider clinical trial access beyond major cities, increased number of skilled allied health care professionals and patient-friendly measures like duty exemptions on critical and rare disease medicines, these steps help build a stronger, diversified and more resilient and integrated healthcare ecosystem. Over time, they can support stronger global partnerships, improve access and affordability for patients, and position India as a trusted global hub for integrated healthcare solutions.
Shakthi M. Nagappan, CEO, Telangana Life Sciences
Telangana has been setting the direction for the next phase of life sciences growth well ahead of the curve. Guided by the Chief Minister Revanth Reddy's long-term vision and D. Sridhar Babu, Minister for Industries, Commerce and IT passionate leadership, our Life Sciences Policy 2026–30 anticipated this shift by prioritising advanced and complex manufacturing, deep innovation and R&D, and the creation of a strong, globally integrated clinical research and clinical trial network. The Union Budget’s focus on precisely these areas now amplifies this momentum, accelerating our goal of attracting US $25 billion in investments and generating 500,000 jobs while reinforcing Hyderabad’s position as a global life sciences innovation hub.
Sanjiv Navangul, CEO, BSV (A Mankind Group Company)
The Union Budget 2026 provides much-deserved momentum for India’s biopharma journey. We welcome the government’s intent to strengthen the biopharma ecosystem, and the Biopharma Shakti initiative is an encouraging step in this direction. The focus on building scale across strategic and frontier sectors creates the right environment for long-term improvements in health outcomes. The initiative recognises the need for innovation and research while creating a conducive ecosystem for good health through knowledge sharing and technology.
Alongside this, the emphasis on driving research by setting up new National Institutes of Pharmaceutical Education and Research will not only build talent but also augment the research capabilities of the country. Strengthening the regulatory landscape through a robust biopharma-focused network, including enhanced capacity and faster approval timelines, will further support innovation and improve patient access.
Further, the proposed investment of Rs. 10,000 crore over five years, along with the emphasis on domestic production, will go a long way in strengthening supply security and reducing dependence on imports. This aligns with the vision of BSV, as we remain committed to making in India for India and the world. Additionally, the Budget’s proposal to promote India as a global hub for sports goods is also encouraging. Improved access to quality sports equipment can help drive wider participation of women in sports while supporting healthier lifestyles.
Sujay Shetty, Partner and Leader – Health Industries, PwC India
Union Budget 2026–27 sends across a powerful statement of intent for India’s biopharma sector. The focus on supporting both patient and industry needs through key pillars strengthening biomanufacturing, expanding skills development via additional NIPERs, and accelerating approval timelines—signals a clear commitment towards improving ease of doing business through regulatory capacity building and faster decision-making.
Another significant aspect of this year’s Budget is the strong emphasis on medical tourism. By positioning India as a trusted global destination for high-quality, affordable care, the Budget reinforces the sector’s potential both as a growth engine as well as a contributor to India’s global healthcare leadership.
Equally encouraging is the much-needed focus on Ayurveda and wellness. By providing targeted support to help the sector build scale and global competitiveness the government recognises India’s unique strengths in the pharma sector and opens new opportunities for innovation, exports, and job creation.
Taken together—across biopharma, medical tourism, Ayurveda, wellness, and skills building—these proposals make this a truly forward-looking Budget that will take India well on its way to achieving the goals of a Viksit Bharat.
Aditya Sharma, Head of Process Solutions, India Region, Merck Life Science
The Finance Minister’s announcement of the “Biopharma Shakti” initiative is a decisive move towards positioning India as a global center for biopharma manufacturing. With an Rs. 10,000 crore outlay over five years, the initiative provides timely momentum to strengthen domestic capabilities in biologics and biosimilars, while enhancing scale, quality, and global competitiveness across the sector.
The proposed biopharma-focused network, including new and upgraded NIPERs and a nationwide ecosystem of 1,000 accredited clinical trial sites, will significantly reinforce India’s research, talent, and translational capabilities. Equally important is the government’s focus on strengthening the Central Drugs Standard Control Organisation (CDSCO), which will enable faster, science-led approvals aligned with global regulatory benchmarks.
Together, these measures signal a clear shift towards an innovation-driven life sciences ecosystem, providing the regulatory confidence and institutional support needed to accelerate the development and manufacturing of next-generation therapies in India.
Nirav Mehta, CEO and Managing Director, CORONA Remedies
Union Budget 2026 marks a transformative milestone for India’s pharmaceutical and biopharma ecosystem, with the launch of Rs. 10,000-crore Biopharma Shakti programme to strengthen domestic manufacturing of biologics and biosimilars and position India as a global innovation and production hub. With the country’s disease burden steadily shifting towards non-communicable conditions such as diabetes, cancer, and autoimmune disorders, the focus on advanced therapies, expanded clinical trial infrastructure, new NIPER institutes, and faster regulatory approvals through a strengthened CDSCO framework will significantly accelerate research, scale and timely patient access to next-generation treatments.
Complementing this, measures such as customs duty exemptions on select life-saving drugs, the creation of medical tourism hubs, and investments in allied healthcare talent development reflect a holistic approach to improving affordability, accessibility and quality of care. Looking ahead, these reforms are expected to translate into faster development-to-market timelines, reduced import dependence, and broader availability of advanced and affordable therapies across India, particularly for patients battling chronic and life-threatening diseases. For the pharmaceutical industry, this creates a strong platform to invest in complex generics, biologics, and next-generation innovation, while for patients it promises earlier diagnosis, quicker access to cutting-edge treatments, and better health outcomes, ultimately strengthening India’s position as both the pharmacy of the world and a reliable provider of quality healthcare at scale.
Mohan Jain, Director, Naprod Life Sciences
Budget 2026 is a strong endorsement of India’s MSME-led pharmaceutical manufacturing, particularly for companies operating in complex and critical therapy areas such as oncology. The Biopharma SHAKTI initiative provides a timely push to strengthen domestic capabilities in advanced formulations and biologics, while faster regulatory approvals and a stronger CDSCO will significantly improve ease of execution for quality-focused manufacturers. Equally important are the measures aimed at creating ‘Champion MSMEs’ through targeted equity support, improved liquidity and professional compliance assistance, enabling pharma MSMEs to scale manufacturing, invest in quality systems and create high-skilled jobs. The Budget’s intent to rationalise GST structures and address inverted duty issues is a critical step in improving cost competitiveness and cash-flow efficiency for domestic manufacturers. Along with customs duty exemptions on select life-saving drugs, these measures will reduce import dependence, boost self-reliance, and advance India’s Aatmanirbhar Bharat vision, ensuring affordable medicines and a resilient, Viksit Bharat.
Saurabh Agarwal, Director, HAB Pharma
Budget 2026–27 advances the vision of Viksit Bharat by placing manufacturing, pharmaceuticals, MSMEs and export competitiveness at the core of India’s growth strategy, with a focused push to scale seven strategic sectors and rejuvenate legacy industrial clusters to improve productivity and cost efficiency. The Rs. 10,000 crore Biopharma SHAKTI programme strengthens the domestic biologics and biosimilars ecosystem through new and upgraded NIPERs, the strengthening of the Central Drugs Standard Control Organisation with a dedicated scientific review cadre and domain specialists to meet global regulatory standards and faster approval timelines—driving job creation, reducing import dependence, improving access to affordable medicines, and positioning India as a credible global hub for advanced therapies in line with the resolve of Aatmanirbhar Bharat. The Budget further reinforces MSMEs through a Rs. 10,000 crore SME Growth Fund, a Rs. 2,000 crore expansion of the Self-Reliant India Fund, improved liquidity via TReDS, credit guarantees and GeM integration, complemented by ‘Corporate Mitras’ to ease compliance, while customs reforms such as trusted importer facilitation, electronic sealing and an integrated Customs Integrated System will streamline exports and deepen India’s integration with global markets.
Hari Kiran Chereddi, MD & CEO, HRV Pharma
Biopharma Shakti is a well-timed and deeply structural intervention as the disease burden in India is increasingly shifting towards non-communicable diseases like diabetes, cancer, and autoimmune diseases. The Union budget’s commitment of Rs. 10,000 crores in biologics and biosimilars, clinical trial facilities, institutional capacity building through NIPERs, and a strengthened CDSCO indicates a shift from merely scale-based pharma to capability and science-based biopharma.
If implemented with speed and a strong regulatory focus, this initiative could help make access and affordability easier while also making India a credible biopharma manufacturing and innovation destination globally.
Suraj Punjabi, Cofounder, Medicine Walla
The Union Budget’s focus on healthcare is a meaningful step towards improving access and affordability for patients nationwide. Making 17 essential medicines, especially for cancer and rare diseases, duty-free is a patient-centric decision that will help reduce treatment costs at the retail level and enhance access to critical medicines. Such measures strengthen last-mile healthcare delivery and support community pharmacies in serving patients better.