Union Budget 2026: ‘A great day for Biopharma’, Experts cheer Rs 10,000-Crore SHAKTI push

Budget 2026 | Union Finance Minister Nirmala Sitharaman’s presented her ninth consecutive Budget in the Parliament on February 1 2026. The Finance Minister emphasised that the government has consistently chosen reform over rhetoric and addressed global uncertainty.

Biopharma veteran Kiran Mazumdar-Shaw was among the first to react to the Union Budget 2026, flagging the government’s renewed focus on life sciences, innovation, and healthcare-led growth. In a series of posts on X, the Biocon chairperson welcomed the Budget’s emphasis on biopharma innovation, clinical research, and long-term health outcomes, calling it a step in the right direction for strengthening India’s global standing in healthcare and biotechnology.

Her reaction set the tone for wider industry sentiment: Budget 2026 is being seen not as a one-year spending plan, but as a strategic reset for India’s life sciences ecosystem.

Finance Minister Nirmala Sitharaman announced the ₹10,000-crore Biopharma SHAKTI initiative, aimed at boosting research, innovation, and manufacturing in biologics, vaccines, diagnostics, and advanced therapies over the next five years. The Budget also proposed the creation of a network of over 1,000 accredited clinical trial sites, signalling the government’s intent to make India a global destination for clinical research.

The emphasis was clear: move beyond volume-led healthcare and build capabilities in innovation, prevention, and high-value research, supported by digital and AI-driven systems.

Shift towards longevity and preventive healthcare

Masaharu Morita, Founder and Program Director, NURA - AI Health Screening Centre, said "The Union Budget 2026 places longevity and chronic disease management at the centre of India’s healthcare and life sciences agenda. The ₹10,000-crore Biopharma Shakti initiative recognises the growing burden of non-communicable diseases and the need to scale investments in biologics, diagnostics, early screening and clinical research. This marks a clear shift from episodic care to long-term health management, with prevention and quality of life as core priorities."

He also highlighted the Budget’s strong push for AI integration across healthcare, education and research, calling it foundational for a future-ready ecosystem. "By integrating life sciences with AI-enabled screening, clinical decision-making and talent development, the government is laying the foundation for a future-ready healthcare ecosystem one that supports healthier, longer lives and strengthens India’s position as a global hub for healthcare innovation." he added.

A turning point for deep tech and life sciences startups

Sateesh Andra, Founder and Managing Director, Endiya Partners, described the Budget as an inflexion point. "The launch of ISM 2.0 with ₹40,000 crore and Biopharma Shakti with ₹10,000 crore, combined with the tax holiday for data centres extending to 2047, creates the foundational policy architecture our founders have needed to build globally competitive companies from India."

He noted the shift from assembly-led incentives to full-stack innovation, particularly the focus on Indian IP, semiconductor materials, and clinical research infrastructure.

"This budget recognises what we've been investing in for years: that India's competitive advantage lies not in replicating existing models, but in building differentiated IP and solving hard technical problems. From our portfolio companies developing 4D imaging radar chips and AI-first robotics platforms, to those pioneering stem cell therapies and AI-native security platforms, we're seeing Indian founders tackle challenges that were once considered possible only in Silicon Valley or Shenzhen," he argued.

He also stressed, "The ecosystem's success will ultimately depend on execution, how quickly these policies translate into accessible infrastructure, how effectively we build the skilled workforce these sectors demand, and how well we support founders through the difficult early stages of deep tech development."