Biopharma gets a boost in Budget 2026 with ₹10,000-crore outlay
Biopharma Shakti programme to boost domestic manufacturing of biologics and biosimilars. The Budget also announces customs duty waivers on select cancer and rare disease drugs, outlines measures to expand healthcare infrastructure, allied health capacity and traditional medicine institutions
Finance Minister Nirmala Sitharaman, in the Union Budget 2026, laid out a broad push to strengthen India’s pharma manufacturing base and expand healthcare infrastructure.
She announced Biopharma Shakti, a new programme with an outlay of ₹10,000 crore over five years, to strengthen India’s biopharma manufacturing ecosystem as part of Budget 2026.
She informed that the initiative seeks to boost domestic production of biologics and biosimilars, as India’s disease burden shifts towards non-communicable diseases such as diabetes, cancer and autoimmune disorders.
As part of the programme, the government will also set up three new National Institutes of Pharmaceutical Education and Research (NIPERs) and upgrade seven existing NIPERs. A network of 1,000 accredited clinical trial sites will also be created across the country.
The government will strengthen the Central Drugs Standard Control Organisation to improve regulatory timelines and align approvals with global standards.
The Budget announced a customs duty waiver as well on 17 cancer drugs and seven drugs for rare diseases, a move expected to lower treatment costs.
Healthcare and allied health measures
On the healthcare side, the Budget announced the upgradation and creation of government institutions for allied health professionals, including optometry, radiology, anaesthesia and behavioural health.
The government will support the setting up of five regional medical hubs in partnership with the private sector. They will be integrated healthcare complexes combining medical, educational, and research and create jobs for doctors and allied health professionals.
Around 1.5 lakh caregivers will be trained over the next five years to offer geriatric and allied care services, announced the FM.
The Budget also announced three new All India Institutes of Ayurveda, upgrades to AYUSH pharmacies and drug testing labs, and strengthening of the WHO Global Traditional Medicine Centre for research, training and awareness.
In addition, the government will set up NIMHANS 2, upgrade national health institutes in Ranchi and Tezpur, and enhance emergency and trauma care capacity at district hospitals.
Overall, the Budget placed a strong focus on building India’s biopharma strength while expanding healthcare infrastructure and skilled manpower.