Industry stakeholders view the Union Budget 2026 as a pivotal inflection point in India’s life sciences journey. With the launch of the ₹10,000-crore Biopharma Shakti programme, expansion of clinical trial capacity, strengthening of regulatory institutions, and targeted patient access measures, stakeholders believe India is laying the groundwork to compete in high-value biologics, biosimilars, and advanced therapies. The emphasis on skills, science-led regulation, and infrastructure is expected to accelerate India’s shift up the value chain—reshaping its role from the world’s pharmacy to a trusted global biopharma innovation and manufacturing partner. Industry leaders share their view:
Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance:
“Indian Pharmaceutical Alliance (IPA) welcomes the Union Budget 2026 which demonstrates a policy focus on science and healthcare to prepare India for the future. The Biopharma Shakti programme reflects India’s intent to scale biologics and biosimilars manufacturing with long-term policy certainty, at a time of rising global demand and patent expiries. The Budget aims to take forward India’s pharmaceutical ecosystem by creating a network of over 1000 accredited India Clinical Trials sites, investing in scientific talent through upgrading NIPERs, and augmenting the drug regulator to meet global standards and approval timelines through dedicated scientific review cadre and specialists.
The Budget reinforces a holistic, patient-centric approach to healthcare, including mental health, AYUSH, medical tourism, and trauma care. A strong care ecosystem will train 1.5 lakh multiskilled caregivers in wellness, yoga, and medical support. Additionally, 17 cancer drugs and 7 rare disease drugs have been exempted from customs duty to improve patient access.”
Namit Joshi, Chairman, Pharmexcil:
“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 ₹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.”
Anil Matai, Director General, OPPI:
“The Union Budget’s Biopharma Shakti (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation) programme is a landmark intervention that signals India’s decisive shift toward becoming a global biopharma manufacturing powerhouse. The ₹10,000 crore outlay over five years reflects India’s clear long-term vision to build a resilient, innovation-driven, end-to-end biopharmaceutical ecosystem — spanning research, advanced manufacturing, regulatory excellence, and patient access.
The dedicated push for biologics and biosimilars, supported by a biopharma-focused innovation network, positions India strongly in the next wave of complex, high-value therapies. Equally transformative is the investment in talent and scientific capability through the establishment of three new NIPERs and the upgradation of seven existing institutions. OPPI member companies have been collaborating with NIPERs and believe that this investment will significantly strengthen India’s research backbone and create a skilled workforce aligned with the needs of advanced pharma science.
Expanding India’s clinical research capacity through 1,000 accredited clinical trial sites is a major step toward enhancing trial quality, diversity, and global competitiveness, while also improving early patient access to innovative therapies. Complementing this is the commitment to strengthen CDSCO to global standards, introduce faster approval timelines, implement a dedicated scientific review system, and ensure greater specialist-led evaluations — all of which mark a progressive move toward a more agile, science- based regulatory environment.
OPPI welcomes this comprehensive and forward-looking roadmap, which strengthens India’s journey from being the ‘pharmacy of the world’ to emerging as a global leader in biopharmaceutical innovation and advanced healthcare solutions.”
Achin Gupta, MD & GCEO (Designate), Cipla and Co-Chair, FICCI Pharma Committee:
“A Viksit Bharat is anchored in a Healthy India, and we are pleased to see healthcare take centre stage in the Union Budget 2026. It signals a strong commitment towards strengthening India’s pharmaceutical and healthcare ecosystem, with clear emphasis on innovation, research and value driven growth. The prioritisation of long-term capacity and capability building through higher end manufacturing, advanced therapies and improved access to quality care, is laying the foundation for greater self-reliance and enhanced global competitiveness.”
Chakravarthi AVPS, Chairman, Federation of Pharma Entrepreneurs (Telangana & Andhra Pradesh):
“On the pharmaceutical and biopharma side, the Government has launched an important initiative called ‘Biopharma Shakti’ with a ₹10,000 crore allocation. This is not just a number — it signals a strategic push to build India as a global biopharmaceutical manufacturing hub and to deepen innovation, move into advanced therapies, and support high-quality production at scale.
There is also a focus on strengthening our drug regulator, CDSCO — the goal being faster approvals, stronger safeguards and alignment with global standards. Predictable and efficient regulation is as crucial for industry growth as capital support.
For Telangana, this Budget aligns neatly with the state’s life sciences ambition. Hyderabad and the region’s ecosystem can leverage central schemes, industry partnerships and infrastructure momentum to attract investment, create jobs and step up clinical research and manufacturing. The opportunity is real — and it’s up to all stakeholders now to convert policy into projects. In summary, this Budget offers continuity with strategic intent for pharma and healthcare. Not transformational overnight — but directionally positive if executed well.”
Dr. Seema Pai, President, Indian Society for Clinical Research (ISCR):
“The Union Budget 2026 is a timely and strategic intervention for India’s clinical research and biopharma ecosystem. The Biopharma Shakti initiative, backed by an outlay of ₹10,000 crore over the next five years, directly addresses long-standing gaps in trial readiness, skilled clinical research manpower, and globally aligned regulatory practices. Plans to establish 1,000 accredited clinical trial sites, expand academic institutions, build a biopharma-focused research network, and strengthen regulatory systems aligned with global standards will significantly elevate the quality, speed, and ethical conduct of clinical research in India.
Together, these measures create a strong foundation to scale training, improve site preparedness, and enable technology-driven, evidence-based research across the country. With sustained collaboration between academia, industry, policymakers, and patients, this push can accelerate innovation, strengthen India’s position as a trusted global biopharma manufacturing hub, and ultimately improve patient outcomes.”
Kiran Mazumdar Shaw, Chairperson, Biocon Group:
“By placing biopharma among the seven strategic frontier sectors and launching Biopharma Shakti with an outlay of ₹10,000 crore over five years, the Union Budget makes a decisive investment in India’s health and innovation future. As India’s disease burden shifts toward cancer, diabetes and autoimmune disorders, biologics and biosimilars will be central to improving longevity and quality of life. This initiative—spanning manufacturing scale-up, global-grade regulation, new NIPER institutions and a nationwide clinical trials network—can firmly position India as a global biopharma manufacturing hub.”
Shreehas Tambe, CEO & MD, Biocon Biologics:
“Biopharma SHAKTI with an outlay of ₹10,000 crore is a well-timed and much-needed step, especially when seen alongside the earlier ₹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.”
Satish Reddy, Chairman, Dr. Reddy’s Laboratories:
“The Union Budget 2026 underscores India’s commitment to a structural reform-led economic roadmap, driven by three core ‘kartavyas’ (duties) of sustained growth, fulfilling aspirations, and advancing the vision of inclusive progress. Notably, the pharmaceutical sector was the first to be highlighted in the Finance Minister’s presentation, signalling its strategic importance. The emphasis on biologics and biosimilars is particularly timely, as India is at the cusp of taking a global lead in this space.
The ₹10,000-crore Biopharma Shakti programme will be a key enabler for India’s journey from volume to value leadership, helping the country move from being a global supplier of quality medicines to becoming a global innovator. Alongside the expansion of the national clinical trials network and strengthening of the CDSCO with specialised scientific review and globally aligned timelines, these initiatives will enhance India’s capacity to develop complex, high-value therapies.
The addition of new NIPERs and the upgrading of existing ones will expand opportunities for advanced scientific education and skills development, building the talent pipeline essential for innovation-led growth. Recognising the rising burden of non-communicable diseases, particularly cancer, the budget also provides direct relief for patients by exempting basic customs duty on 17 cancer drugs and medicines and extending import duty exemptions to seven additional rare diseases. Combined with regulatory simplification through central–state coordination, these measures are set to strengthen India’s biopharma ecosystem while ensuring patients in India and across the world continue to have access to affordable, high-quality medicines. We look forward to studying the detailed budget to further understand its impact on the pharmaceutical sector.”
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 ₹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.”
Meenakshi Nevatia, Country President, Pfizer India:
“The Union Budget 2026 reflects the Government’s continued commitment to strengthening India’s healthcare and life sciences ecosystem as a key pillar of the Viksit Bharat vision. It builds on earlier efforts that encouraged domestic manufacturing, innovation, and improved access to medicines.
We particularly welcome the announcement of Biopharma Shakti, with a dedicated outlay of ₹10,000 crore over the next five years to position India as a global biopharma manufacturing hub. For companies with long-standing manufacturing and R&D operations in India, these measures provide greater confidence to scale high-quality, globally compliant production in and from India.
With non-communicable diseases accounting for over 60% of India’s disease burden, sustained investment in prevention and timely treatment is critical. Measures such as exempting basic customs duty on select cancer medicines reflect this patient-centric approach that can improve access and health outcomes. At Pfizer, we remain committed to partnering with the Government and broader healthcare ecosystem – to improve access to medicines for patients across the country.”
Dr. K. Anand Kumar, MD, Indian Immunologicals:
As India moves forward with the INR 10,000 Cr BioPharma Shakti initiative, the Union Budget presented a defining moment to strengthen the country’s position as a global vaccine and biologics manufacturing hub.
India already supplies nearly 60% of the world’s vaccines, and this initiative has the potential to accelerate our transition from being a volume-driven supplier to an innovation-led biopharma leader. Targeted investments in advanced manufacturing infrastructure, high-containment facilities, and indigenous production of key raw materials such as culture media, adjuvants, and single-use systems will significantly improve supply chain resilience.
Overall, the Budget lays a strong foundation for India to evolve from the ‘pharmacy of the world’ to a trusted global hub for affordable vaccines, biologics, and health security.”
Sanjiv Navangul, CEO, BSV:
“We welcome the government’s intent to strengthen our 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, the emphasis on driving research by setting up new National Institutes of Pharmaceutical Education and Research, will not only build talent, it will also augment the research capabilities of our country. Strengthening the regulatory landscape with a robust biopharma-focused network, including new capacity and approval timelines will further support innovation and faster patient access.
Further, the proposed investment of Rs 10,000 crore over five years and the emphasis on domestic production will go a long way in strengthening supply security and reducing dependence on imports. This augments the vision of BSV as we remain committed towards 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.”
Ashok Nair, MD, 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.”
Nitin Jain, Founder and Managing Director, Iberia Pharmaceuticals:
“The Union Budget’s announcement of the ₹10,000 crore Biopharma Shakti initiative, along with investments in new and upgraded NIPERs, a nationwide clinical trial network, and the strengthening of regulatory institutions such as the CDSCO, is a strong and forward-looking step for India’s pharmaceutical ecosystem. These measures will significantly improve the industry’s ability to innovate, scale high-value biologics and biosimilars, and align more closely with global drug development and manufacturing standards. The emphasis on priority disease areas such as diabetes, combined with a clearly defined five-year horizon, provides long-term direction while strengthening India’s standing as a credible global destination for clinical research. By prioritising research infrastructure, regulatory capacity and domestic manufacturing, the government has laid the foundation for an innovation-led growth model that will enhance industry competitiveness and reinforce India’s position as a trusted global biopharma manufacturing and research hub, while addressing the growing burden of non-communicable diseases.”
Saransh Chaudhary, President, Global Critical Care, Venus Remedies and CEO, Venus Medicine Research Centre (VMRC):
“The Union Budget 2026–27 reinforces a clear shift toward knowledge-led and science-driven growth within India’s pharmaceutical sector. Initiatives such as the Biopharma SHAKTI programme, investments in expanding accredited clinical trial infrastructure, strengthening regulatory science, and focused support for pharmaceutical education signal the government’s intent to move Indian pharma steadily up the value chain in response to the country’s evolving disease burden. For areas such as critical care and antimicrobial resistance, these reforms are particularly timely. Advancing high-quality generics and complex therapies today requires robust clinical evidence, strong regulatory oversight, and a deeper research ecosystem that ensures not only safety and efficacy, but also responsible use and long-term treatment effectiveness.
The Budget’s targeted customs duty exemptions for critical cancer and rare-disease medicines reflect a continued emphasis on affordability and patient access, while the creation of a dedicated SME Growth Fund aimed at building national and global champions strengthens the broader pharmaceutical ecosystem. At Venus Remedies, our research-led approach through the Venus Medicine Research Centre and our global collaborations focused on drug-resistant infections align closely with this direction, supporting India’s emergence as a trusted source of high-quality, science-backed therapies.”
Dr. Saloni Wagh, MD, Supriya Lifescience:
“The Union Budget 2026–27 reflects a more mature phase of policy thinking for India’s pharmaceutical and biopharma sector. The ₹10,000 crore Biopharma SHAKTI commitment, spread over five years, signals a clear recognition that global leadership in this space requires sustained investment in research capability, clinical trial infrastructure and manufacturing depth, rather than short-term incentives.
The proposed expansion of accredited clinical trial sites is particularly significant as global pharma companies increasingly seek reliable, compliant and cost-efficient development partners. Faster and more credible trials can meaningfully shorten development cycles and strengthen India’s standing in the global drug development ecosystem. Measures such as customs duty exemptions on critical medicines strike a pragmatic balance between patient access and industry stability, while the broader push to strengthen medical tourism reinforces the need for quality-driven pharmaceutical manufacturing. Overall, the Budget builds confidence for long-term investment and supports India’s transition from scale-led growth to innovation-led leadership in biopharma”
Sanjay Vyas, President, Managing Director, GCC Head India, Parexel:
“The Budget 2026’s Biopharma Shakti strategy marks a pivotal moment for clinical research in India. The creation of 1,000 clinical trial sites directly address long-standing gaps in research infrastructure and scale. This can materially improve trial quality, speed and geographic reach, while making India a more reliable destination for global clinical development. For patients, it means earlier access to innovative therapies. For the industry, it brings clarity and confidence that clinical research is now a strategic national priority.”
Dr. Priya Kapoor G. Hingorani, Managing Director, Miltenyi Biotec India and VP APAC:
“The Union Budget 2026 marks an important milestone for both biotech and biopharma ecosystem. With significant investments fostering innovation, upskilling and technology adoption, participation by both domestic and international players will bolster manufacturing infrastructure. The emphasis on expanded research, clinical trials, regulatory reforms and the creation of a network of 1,000 accredited clinical trial sites positions India to move up the value chain as a high-impact biotech innovation hub, with the potential to improve treatment options across cancer, autoimmune and metabolic conditions. Sustained attention to specialised skills and quality frameworks will be key to ensuring that innovation is translated safely and effectively into patient care.”
Rajwinder Mehdwan, Managing Director & CEO, Roche Pharma India & Neighbouring Markets:
“Union Budget 2026 places healthcare at the centre of India’s economic progress under the Viksit Bharat vision. The focus on non-communicable diseases such as cancer and mental health rightly acknowledges their growing impact on India’s health outcomes and the need for innovative, outcome-driven care.
We welcome the emphasis on Biopharma Shakti with the proposed outlay of INR10,000 cr over 5 years and the strengthening of CDSCO to global standards, recognising that biopharma innovation, manufacturing, research and regulatory standards must advance in parallel. This integrated approach is timely and critical to bringing innovative medicines to patients with quality and speed.
The expansion of NIPER capacity and the creation of a nationwide network of 1000 accredited clinical trial sites further reinforce India’s potential as a global biopharma and research hub, while enabling broader and more inclusive participation in high-quality clinical research.
In parallel, investments in allied health services and workforce development will lead to decentralising care delivery, strengthening last-mile access and improving patient outcomes. The focus on cancer and rare diseases through duty exemptions will help ease the burden on patients and improve access to innovative therapies.
Together, these measures support India’s transition toward a value-led healthcare system that will accelerate access to the best care for all its citizens, and boost its global competitiveness, in alignment with the vision of Viksit Bharat”
Shweta Rai, Managing Director – India and Country Division Head – South Asia, Bayer Pharmaceuticals:
“The Union Budget 2026 positions healthcare and life sciences as a critical pillar of India’s long-term economic and social progress, aligned with the vision of Viksit Bharat. We welcome the government’s focus on the Biopharma Shakti initiative, with an outlay of ₹10,000 crore over the next five years, which will strengthen domestic biopharma manufacturing and research and development capabilities. The Budget’s emphasis on supportive R&D tax incentives will further encourage innovation in biologics and biosimilars while rationalisation of customs duties on APIs, raw material and medical devices will strengthen domestic value chains.
In parallel, patient-focused measures addressing India’s growing non-communicable disease burden, including the exemption of Basic Customs Duty on 17 drugs and medicines and the addition of seven rare diseases under import duty exemption for personal medical use, will help improve access to critical therapies. We particularly appreciate the measures aimed at strengthening clinical research capabilities through a nationwide network of 1,000 accredited clinical trial sites, alongside efforts to enhance the capacity of the Central Drugs Standard Control Organisation to enable globally aligned regulatory standards and faster approval timelines.
These steps will support innovation, translate scientific advances into real-world clinical impact, improve patient access to high-quality therapies, and reinforce India’s transition from volume-based manufacturing to value-driven pharmaceutical leadership. We look forward to continued collaboration with the government to advance healthcare innovation and long-term health outcomes for patients in India and health for all.”
Raheel Shah, Business Development Director, BDR Pharmaceuticals:
“The Union Budget’s focus on developing India’s pharmaceutical and biopharmaceutical sector, especially through the ‘Biopharma Shakti’ initiative with a funding of ₹10,000 crores, is a welcome and well-planned step given the shift in the country’s disease burden towards non-communicable diseases. In this context, other initiatives like the exemption of basic customs duty on certain cancer medicines and support for the import of rare diseases will also go a long way in making treatment more affordable for patients. At BDR Pharmaceuticals, we believe that this will be a major catalyst to promote innovation, enhance local manufacturing, and ensure an uninterrupted supply of quality and affordable cancer medicines.”
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 the ₹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 ₹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 ₹10,000 crore SME Growth Fund, a ₹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.”
Vivek Sharma, Executive Chairman of Cohance Lifesciences:
“Pharma is attracting significant attention from the government, reflecting the sector’s critical role in driving India’s overall pharmaceutical industry development. In line with the vision of Viksit Bharat and the pursuit of Aatmanirbharat, initiatives like Bio Pharma Shakti underscore the commitment to strengthening domestic manufacturing, promoting innovation, and fulfilling our Kartavya to position India as a global leader in healthcare solutions.”
Nikhil Ambekar, Co-founder & CEO, Turinton AI:
“The ₹10,000 crore Biopharma SHAKTI allocation marks a structural shift in how India positions itself in pharmaceuticals from volume-led generics to innovation-led biologics. But the real challenge now is execution. Pharma companies don’t need more AI experiments; they need platforms that can handle real-time clinical trial monitoring, adverse event prediction, regulatory automation, and biologics supply chain optimisation while meeting the highest standards of compliance and data sovereignty. In life sciences, zero data movement and complete audit trails are no longer optional; they are fundamental. The opportunity goes far beyond discovery into manufacturing yield, quality control, and post-market surveillance, where speed to deployment will define which companies lead the biosimilars race.”
Amitabh Rath, Director, Finance Shared Services, Illumina:
“We welcome the Union Budget 2026 and commend the government’s continued focus on building a strong, future-ready biopharma ecosystem in India. The emphasis on developing India as a global biopharma manufacturing hub through the Biopharma Shakti initiative, along with investments in clinical trial infrastructure, regulatory strengthening, and advanced skill development, reflects a clear intent to drive innovation-led growth.
As genomics and data-driven science increasingly underpin drug discovery, clinical research, and precision healthcare, these measures help strengthen India’s potential to emerge as a globally competitive biopharma and healthcare innovation hub. They also encourage deeper collaboration across industry, academia, and healthcare systems.”
Duraisamy Rajan Palani (Durai), Founder and CEO of Archimedis Digital:
“The Union Budget 2026 announcement around BioPharma Shakti with a ₹10,000 crore outlay is a timely and strategic move to position India as a global biopharma manufacturing and innovation hub, especially as the country’s disease burden shifts towards chronic and non-communicable conditions. What will truly differentiate this push is the intelligent adoption of digital technologies and AI across the biopharma value chain—from R&D and clinical trials to manufacturing, quality assurance and regulatory compliance. As India moves to implement the revised Schedule M, digital-first systems, AI-led data analytics, and real-time quality intelligence will be critical to embedding data integrity, audit readiness, and traceability by design—rather than as post-facto compliance. Technologies such as digital twins and predictive modelling can significantly shorten development cycles, improve yield efficiency, and ensure consistent adherence to global GMP and data integrity standards expected by regulators. This convergence of regulatory reform and advanced technology has the potential to elevate global confidence in Indian biopharma—from being seen as a cost-efficient manufacturer to a trusted, high-quality innovation partner. Additionally, the government’s emphasis on cutting-edge technologies under the three Kartavya framework sends a clear signal that India’s biopharma growth will be driven not just by capacity, but by technology-led competitiveness, credibility, and resilience. For Archimedis Digital, this creates a powerful opportunity to build digital-first, future-ready biopharma ecosystems that can take Indian innovation confidently to the world.”
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 Hon’ble Chief Minister Shri Revanth Reddy’s long-term vision and Shri D. Sridhar Babu, Hon’ble 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 USD 25 billion in investments and generating 500,000 jobs while reinforcing Hyderabad’s position as a global life sciences innovation hub.”
Dr. Supriya Shidhaye, Principal of Vivekanand Education Society College of Pharmacy:
“The Union Budget 2026–27, through the launch of the Biopharma SHAKTI Mission with a ₹10,000-crore, five-year outlay, marks a transformative step for India’s pharmaceutical and biopharma ecosystem. The focus on biologics and biosimilars, establishment of three new NIPERs, and upgradation of seven existing institutes will significantly strengthen academic capacity, advanced research, and industry-ready talent development. The creation of over 1,000 accredited clinical trial sites and the strengthening of CDSCO with a dedicated scientific review cadre will further enhance India’s global credibility in research and regulatory excellence. Together, these reforms signal a decisive shift from generic-led manufacturing to innovation-driven, high-value pharmaceutical production, empowering academia to play a central role in India’s journey towards a Viksit Bharat and global pharmaceutical leadership.”
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.”
Hitesh Sharma, Partner and National Health Science Tax Leader, EY India:
Overall, a positive budget for the healthcare industry, focusing on the fundamentals of the bio-pharma sector, with a big boost through an outlay of ₹10,000 crore to support manufacturing for global purposes. There is also a focus on trial areas by aiming to improve timelines and processes, and by strengthening protocols to meet global drug standards and approval timelines. The promotion of medical tourism, along with building capabilities for medical and paramedical professionals, will continue to support the hospital and healthcare sector. Furthering the Ayush scheme is also welcome. The exemption of basic customs duty on 17 drugs and medicines will improve affordability for patients in need. Overall, this is very positive for the industry. The only further ask would be direct tax incentives for research and development in the pharmaceutical sector.
Biplab Lenin, Partner, Cyril Amarchand Mangaldas:
“Building on the Government’s continued emphasis on domestic manufacturing, R&D and healthcare capacity, the ‘Bio Pharma Shakti’ initiative introduced in the Union Budget 2026, is a timely and constructive intervention. The proposed ₹10,000 crore investment over the next five years, alongside faster clinical trial approvals and the expansion to 1,000 trial sites, has the potential to significantly strengthen India’s bio-pharma and biosimilars ecosystem, particularly in addressing the growing burden of diabetes and cancer. With effective implementation, the initiative can improve access to advanced therapies and further reinforce India’s position as a trusted and reliable global healthcare partner.
The Union Budget 2026 reflects a clear and deliberate focus on strengthening India’s pharma and healthcare ecosystem. Alongside support for innovation-led pharmaceutical growth, the Budget’s recognition of quality-driven Ayurveda research and export potential is a positive step towards integrating traditional systems with modern standards. The emphasis on training and skill development for healthcare providers, including allied health professionals and caregivers, and the creation of five regional medical hubs integrating research, quality care, and post-treatment services, can meaningfully expand employment opportunities while improving healthcare outcomes. Additionally, the focus on animal husbandry and veterinary care, supported by collaborative research and incentive frameworks, signals a more holistic and future-ready approach to health and life sciences policy.”
Ravi Shah, Partner, Cyril Amarchand Mangaldas:
“By targeting manufacturing scale-up across healthcare, semiconductors, electronics, rare earths, chemicals, infrastructure equipment and textiles, the 2026 Budget reinforces India’s commitment to building globally competitive industrial capacity. The introduction of Biopharma SHAKTI is particularly significant for healthcare investors, as it strengthens biologics manufacturing, clinical trial infrastructure and regulatory capacity – key factors as India looks to become global Biopharma manufacturing hub and attract more investment in this sector.”
Vaibhav Mittal, Partner, Khaitan & Co:
“The launch of the ‘Biopharma Shakti’ with a ₹10,000 crore corpus creates a new asset class in the life sciences sector. The focus on establishing a network of 1,000 accredited clinical trial sites and strengthening the Central Drug Standard Control Organisation (CDSCO) addresses the regulatory bottleneck that has long hampered drug discovery in India. From a capital markets view, this lays the groundwork for R&D-focused biotech listings, moving our market beyond just generic manufacturers.”
Ankit Modi – Founding Member & Chief Product Officer, Qure.ai:
“The ₹10,000 crore allocation under Biopharma Shakti reflects a clear recognition that India’s biopharma ambitions will be shaped not only by manufacturing scale, but by the strength of its clinical and regulatory foundations. The plan to create over 1,000 accredited clinical trial sites and strengthen regulatory review is a key step toward improving the quality and credibility of clinical research, especially as biologics and biosimilars become more important in treating diseases such as cancer, diabetes and autoimmune disorders.
The budget also highlights artificial intelligence as a national priority and proposes the creation of five regional medical hubs that integrate care, diagnostics and research. Together, these measures point to a more connected healthcare system where reliable clinical and diagnostic data will be essential.
For Qure.ai, this direction reinforces the need to build diagnostic and data systems that work reliably at scale and support India’s credibility in global biopharma research, without adding complexity to already stretched health systems.”
Ajay Mahipal, Co-founder and General Partner, HealthKois:
With the Union Budget 2026 allocation crossing the ₹1 lakh crore mark for the first time in the healthcare industry, we are seeing a structural shift from a social utility to a high-growth asset class.The ₹10,000 crore Biopharma Shakti programme and 1,000 accredited clinical trial sites act as significant de-risking mechanisms for investors. By upgrading NIPERs and strengthening the CDSCO, the government is creating a predictable regulatory pathway that encourages long-term capital deployment in deep science.
This industrial depth is balanced by immediate market resilience through customs exemptions on 36 life-saving drugs. Furthermore, the training of one lakh allied professionals addresses the talent shortage that typically limits how fast healthcare startups can scale operations.
To fully leverage this, we must recognize that the BioPharma Strategy for Health Advancement through Knowledge, Technology, and Innovation will strengthen India’s digital ecosystem in healthcare. Consequently, the investment focus can now shift to the invisible layers of the health stack, which includes backing backend health data infrastructure and AI-driven diagnostics. This transitions India to a unified, patient-first digital economy, offering massive scalability for startups serving both domestic and global needs.”
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.
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.”
Anuj Sethi, Senior Director, Crisil Ratings:
“India’s pharmaceutical sector has long been a leader in low-cost, small-molecule generics. The Biopharma Shakti initiative, with a Rs 10,000 crore outlay over 5 years and the setting up of 1,000 accredited trial sites will support development of India as a global bio-pharma hub and will enable domestic companies expand into more complex products such as biosimilars. This support is crucial as biosimilars require significant investments in clinical studies and capital. The initiative will help reduce gestation periods and regulatory hurdles for US FDA and EMA approvals, positioning India to capitalise on the $100-110 billion opportunity arising from the patent expiries for blockbuster biologics over the next decade.”