Union Budget 2026–27 allocates ₹10,000 crore for India’s biopharma ambitions

Union Budget 2026: As India sees a growing burden of non-communicable diseases such as diabetes, cancer and autoimmune disorders, the Union Budget 2026–27 has sought to strengthen domestic biopharma manufacturing and research capacity to support more complex forms of treatment.

“India’s disease burden is observed to be moving towards non-communicable diseases, like diabetes, cancer and autoimmune disorders,” Finance Minister Nirmala Sitharaman said while presenting the Union Budget in Parliament on Sunday. “Biologic medicines are key to longevity and quality of life at affordable costs,” she added. Biologic drugs are advanced medicines derived from living cells, commonly used in cancer and autoimmune treatments.

The policy push comes amid a sharp rise in chronic disease. According to government and ICMR estimates, non-communicable diseases now account for over 55% of India’s total disease burden. India has more than 100 million people living with diabetes, while cancer incidence stands at over 14,00,000 new cases annually, based on data from the Indian Council of Medical Research and national disease registries.

To support this effort, the government announced the Biopharma SHAKTI programme. “To develop India as a global biopharma manufacturing hub, I propose the Biopharma SHAKTI with an outlay of ₹10,000 crore over the next five years,” Sitharaman said.

Biologic drugs, which include treatments for cancer, autoimmune and metabolic diseases, now account for a large share of global pharmaceutical spending. As per the Department of Pharmaceuticals, biologics make up over 35% of the global pharmaceutical market by value, estimated at over ₹33 lakh crore annually.

In comparison, according to the Department of Pharmaceuticals, India’s biopharma and biologics market is estimated at ₹60,000–66,000 crore, forming around 15% of the domestic pharmaceutical market, which is valued at about ₹4.1 lakh crore. Despite India’s strength in generics, the country continues to import a significant share of high-end biologics and advanced therapies.

Against this backdrop, industry leaders say the Budget’s focus on biologics and biosimilars addresses a clear gap in domestic capabilities. Sheetal Arora, Promoter and CEO of Mankind Pharma, said the emphasis on biopharma is timely as treatment needs increasingly centre on chronic and complex diseases. “The Biopharma SHAKTI initiative recognises that longevity, quality of life and affordability will shape healthcare outcomes,” he said.

The Budget also focused on expanding education and research infrastructure to support domestic development. “The strategy will include a biopharma-focused network with three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing ones,” Sitharaman said. She added that it would also “create a network of over 1,000 accredited India clinical trials sites”.

At present, according to data from the Ministry of Health and Family Welfare and the Indian Council of Medical Research, India accounts for less than 3% of global clinical trials, despite having one of the largest patient pools in the world. Limited trial infrastructure and accreditation have been cited as key constraints on India’s ability to develop and test complex biologics locally.

From a healthcare delivery perspective, Ashutosh Raghuvanshi, Managing Director and CEO of Fortis Healthcare, said the expansion of clinical trial infrastructure and training institutions could help build a stronger domestic ecosystem for biologics and biosimilars, improving access to advanced therapies over time.

Industry leaders also see the reforms as part of a longer-term push towards innovation-led growth. Kiran Mazumdar-Shaw, Chairperson of Biocon Group, said placing biopharma among India’s strategic frontier sectors represents a decisive investment in the country’s health and innovation future, adding that strengthening manufacturing, regulation and clinical research could help position India as a global biopharma manufacturing hub.

Industry analysts say the emphasis on biologics, clinical trials and specialised training is aimed at reducing dependence on imports and enabling Indian drugmakers to compete in higher-value segments such as biosimilars and advanced injectables, where global demand continues to grow.