In a significant boost to the Indian biopharmaceutical sector, the Union Budget 2026, presented by Finance Minister Nirmala Sitharaman, unveiled the ‘Biopharma Shakti’ initiative with a ₹10,000 crore outlay. This ambitious program aims to propel India into becoming a global biopharma hub by strengthening domestic manufacturing capabilities for biologics and biosimilars.
The Biopharma Shakti scheme will be implemented over the next five years and will focus on several key areas, including boosting domestic manufacturing capacity, promoting research and innovation, and supporting startups and MSMEs in the biologics sector. The initiative is aligned with the government's broader objective of scaling up production in strategic and frontier sectors.
A key component of the Biopharma Shakti program is the establishment of a nationwide network of 1,000 accredited clinical trial sites. This network is expected to significantly strengthen India's clinical research ecosystem, reduce the reliance on overseas trials, and make the country a more attractive destination for global biopharmaceutical investments. By creating a robust infrastructure for clinical trials, the government aims to accelerate the development and testing of new drugs and therapies within India.
Finance Minister Nirmala Sitharaman emphasized that the focus on biopharmaceuticals is driven by the evolving healthcare challenges in India. With a growing burden of non-communicable diseases such as diabetes and cardiovascular conditions, there is an increasing need for advanced therapies, biologics, and sustained innovation. Building a strong biopharma manufacturing base is crucial to addressing these emerging healthcare needs and ensuring access to affordable and innovative treatments for Indian citizens.
The Indian biopharmaceutical market has significant growth potential. The domestic biosimilars market is projected to reach a valuation of US$35 billion by 2030. By 2025, the Indian biologics market is expected to account for around US$12 billion with a CAGR of 22 per cent. Currently, India holds only 8% of the world's biopharmaceutical market. The Biopharma Shakti initiative is expected to bridge this gap by fostering innovation.
The government's commitment to strengthening the biopharma sector extends beyond the Biopharma Shakti program. The Union Budget 2026 also included provisions for the India Semiconductor Mission (ISM) 2.0 and the Electronics Components Manufacturing Scheme, along with the establishment of dedicated rare-earth corridors and chemical parks. These initiatives collectively aim to enhance India's manufacturing capabilities, reduce import dependence, and promote self-reliance in critical sectors.
With the launch of Biopharma Shakti, the government aims to combine health advancement with industrial growth, positioning India as a competitive player in the global biopharmaceutical value chain while addressing domestic healthcare priorities. The initiative is expected to attract investments, create employment opportunities, and contribute to the overall economic growth of the country.
