Union Budget 2026: 'Bio Pharma Shakti' gets Rs 10,000 crore over five years, FM Sitharaman’s big push

Finance Minister Nirmala Sitharaman, presenting her record ninth consecutive Union Budget speech, announced a new biopharma push with a five-year outlay of Rs 10,000 crore, positioning it as a key pillar of India’s healthcare innovation agenda, a move that would give a boost to the country's pharmaceuticals industry.

“I propose Bio Pharma Shakti with a proposal of Rs 10,000 crore for next 5 years,” Sitharaman said in her Budget address, as the government looks to strengthen domestic capabilities in health-related research, manufacturing and next-generation technologies.

Biopharmaceuticals (biologics) are complex drugs made from living sources, not chemical processes. The government is planning interventions in manufacturing, strategic sectors, healthcare, and advanced tech.

Semiconductor Mission 2.0 will aim to produce semiconductor equipment and materials using Indian intellectual property. The India Semiconductor Mission (ISM) aims to develop a strong semiconductor and display industry in India.

Sitharaman said the initiative, the BioPharma Strategy for Health Advancement through Knowledge, Technology and Innovation,  will help deepen India’s digital healthcare ecosystem. “The BioPharma Strategy for Health Advancement through Knowledge, Technology and Innovation will strengthen India’s digital ecosystem in healthcare,” she said while delivering the Budget.

The biopharma announcement came as the Budget for FY26 was presented against the backdrop of global volatility and geopolitical uncertainty, with the government signalling a sharper focus on building strategic capacity across emerging sectors.

Alongside the healthcare push, Sitharaman also announced an expansion in manufacturing-linked support for electronics. “Electronic Components Manufacturing Scheme outlay increased to Rs 40,000 crore,” the Finance Minister said.

The Budget speech also flagged moves on critical minerals and rare earths, with Sitharaman indicating support for corridor-based development. “Rare earth permanent scheme, Tamil Nadu to be supported for rare earth corridor among other states,” she said, adding, “Propose to support Orissa Kerala Andhra Tamil Nadu to establish critical mineral corridors.”