The Union Budget 2026 presented by Finance Minister Nirmala Sitharaman has made a resounding statement about India’s future in health innovation with the launch of the Biopharma SHAKTI initiative — an ambitious plan to transform India into a major global hub for biopharmaceuticals. This scheme, announced amidst other sweeping health-related measures, marks a pivotal step in tackling complex diseases, strengthening drug manufacturing, and fostering cutting-edge research — all with a long-term vision for public well-being and economic growth.
What is Biopharma SHAKTI?
At its core, Biopharma SHAKTI — which stands for Strategy for Healthcare Advancement through Knowledge, Technology and Innovation — is a ₹10,000 crore programme spread over the next five years. The objective is clear: to build a full-fledged biopharmaceutical ecosystem in India that goes far beyond traditional drug production and embraces the next frontier of biologics and biosimilars.
Biologics — medicines derived from living organisms — are complex but increasingly essential in treating diseases such as cancer, autoimmune disorders and genetic conditions. Traditionally, much of this segment has been dominated by multinational companies, with production often based outside India. Biopharma SHAKTI aims to change that narrative.
Building India’s Biopharma Backbone
Under this scheme, the government plans to develop end-to-end capabilities that cover:
- Research and innovation hubs focused on biotechnological breakthroughs.
- Advanced manufacturing units capable of producing high-quality biologics and biosimilars at scale.
- Clinical trials networks with standardized accreditation, enabling faster, safer, and more robust evaluation of new therapies.
- Skill development in life sciences, with special emphasis on regulatory science and biotech innovation.
A notable component of the initiative is the establishment of three new National Institutes of Pharmaceutical Education and Research (NIPERs), alongside the upgradation of seven existing ones. These centres will act as beacons for talent, research collaboration and industry engagement — ensuring India has the human and intellectual capital to support a thriving biopharma sector.
Why This Matters for India
India has long been recognised as the “pharmacy of the world” for its strength in generic drug manufacturing. However, biologics — more complex and higher-value than traditional small-molecule drugs — have largely remained outside the country’s core expertise. Biopharma SHAKTI seeks to bridge that gap by investing in infrastructure, regulatory frameworks, and innovation ecosystems.
This shift is particularly important given India’s changing disease burden. With non-communicable diseases like diabetes, cancer, and autoimmune conditions on the rise, access to advanced biologic therapies at affordable prices is critical for improving health outcomes nationwide.
By fostering domestic manufacturing, India can reduce its dependence on imports, lower treatment costs for patients, and bolster its role in global health supply chains — potentially benefiting millions at home and abroad.
Beyond Biopharma SHAKTI — Broader Health Budget Highlights
While Biopharma SHAKTI is undoubtedly one of the standout announcements, the Union Budget 2026 also reinforces India’s broader commitment to healthcare:
- Significant budget increases for public health and infrastructure, with expanded district hospital capacity and emergency care facilities planned.
- Customs duty exemptions on key drugs, including cancer medicines and treatments for rare diseases, to make essential therapies more affordable.
- Expanded support for digital health initiatives, such as the Ayushman Bharat Digital Mission, to promote integrated healthcare records and telemedicine.
- Boosted funding for research institutions like the Indian Council of Medical Research (ICMR), enabling enhanced disease research and innovation.
The Road Ahead
Biopharma SHAKTI represents more than just a budgetary allocation — it’s a strategic pivot toward an innovation-led health economy. By harnessing India’s vast talent pool, bolstering research institutes, and nurturing manufacturing excellence, the scheme could position the country at the forefront of future medicines.
As implementation unfolds over the coming years, the success of this initiative will hinge on collaboration between government, industry, academia, and clinical researchers. If executed effectively, Biopharma SHAKTI could help deliver not only transformative healthcare solutions but also make India a key player in the global biopharmaceutical landscape — a change that promises both healthier lives and economic dividends for generations to come.
