The Union Budget 2026-27 has earmarked Rs 10,000 crore over five years for the development of India’s biopharma sector, signaling a decisive push towards health innovation and global leadership. The budget also proposes the establishment of 1,000 clinical trial sites and strengthening the Central Drugs Standard Control Organisation to meet global standards.

Industry leaders welcomed the move. Biocon Group Chairperson Kiran Mazumdar Shaw said the Biopharma Shakti initiative places India among the seven strategic frontier sectors, emphasizing biologics and biosimilars to address the rising disease burden from cancer, diabetes, and autoimmune disorders. The initiative covers manufacturing scale-up, regulatory improvements, new NIPER institutions, and a nationwide clinical trials network, positioning India as a global biopharma hub.

Dr Reddy’s Laboratories Chairman Satish Reddy highlighted that the program will help India transition from being a global supplier of quality medicines to a hub of innovation. Indian Pharmaceutical Alliance Secretary General Sudarshan Jain and Pharmexcil Chairman Namit Joshi noted that the plan supports MSMEs and strengthens pharma exports, critical for foreign exchange and global health security.

Deloitte India Partner Joydeep Ghosh emphasized the importance of biologics in addressing evolving diseases and upcoming patent expiries. The removal of import duties on certain cancer and rare disease drugs, along with FSMP items, will improve access.