Rs 10k cr 'Biopharma Shakti' an investment in India’s health, innovation future: Industry

New Delhi, Feb 1 (PTI) The government has made a decisive investment in the country’s health and innovation future by proposing an outlay of Rs 10,000 crore in the budget for the development of the biopharma sector over the next five years, according to the industry leaders.

The Union Budget 2026-27 has also proposed setting up 1,000 clinical trial sites and strengthening the Central Drugs Standard Control Organisation.

“By placing biopharma among the seven strategic frontier sectors and launching Biopharma Shakti with an outlay of Rs 10,000 crore over five years, the Union Budget makes a decisive investment in India’s health and innovation future,” Biocon Group Chairperson Kiran Mazumdar Shaw said in a statement.

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, she added.

“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,” she added.

Dr Reddy’s Laboratories Chairman Satish Reddy said the emphasis on biologics and biosimilars is particularly timely, as India is at the cusp of taking a global lead in this space.

“The Biopharma Shakti 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,” he added.

Indian Pharmaceutical Alliance Secretary General Sudarshan Jain said the budget demonstrates a policy focus on science and healthcare to prepare India for the future. Pharmexcil Chairman Namit Joshi said pharma exports today are a critical contributor to India’s trade balance, foreign exchange earnings, and global health security.

“And this is driven largely by MSMEs that form the backbone of the export ecosystem. The announcement of the Biopharma 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,” he added.

Deloitte India Partner Joydeep Ghosh said the biologics sub-segment is essential to conquer shifting disease incidence and make new-age therapies affordable and accessible on the one hand, and vital to capture the large patent cliffs coming up in the next four years in the international markets.

In addition, strengthening the Central Drugs Standard Control Organisation with a dedicated scientific cadre, to meet global standards and approval timeframes, are steps clearly in the direction of positioning India capable of becoming a global biopharma hub in the next few years, he added.

“Besides, removal of import duty from 17 cancer drugs and 7 more rare diseases and Food for Special Medical Purposes (FSMP) are right steps towards easing access to requisite medicines and treatment,” Ghosh said.

Crisil Ratings Senior Director Anuj Sethi said the Biopharma Shakti initiative will support development of India as a global bio-pharma hub and will enable domestic companies to expand into more complex products such as biosimilars.

This support is crucial as biosimilars require significant investments in clinical studies and capital, he added.

“The initiative will help reduce gestation periods and regulatory hurdles for US FDA and EMA approvals, positioning India to capitalise on the USD 100-110 billion opportunity arising from the patent expiries for blockbuster biologics over the next decade,” Sethi said.

Apollo Hospitals Founder and Chairman Prathap C Reddy said the Budget sends a reassuring message that India’s growth will be anchored in healthier citizens and stronger health systems.

The continued focus on expanding public health capacity, strengthening prevention, and improving access across tier-2 and tier-3 India is consistent with the vision of Viksit Bharat, he added.

Shweta Rai, Managing Director – India and Country Division Head – South Asia, Bayer Pharmaceuticals said the Budget 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.

“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,” she added. PTI MSS MSS ANU ANU