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Ministry of Finance | Ministry of Chemicals and Fertilizers | Department of Pharmaceuticals | Ministry of Health and Family Welfare
During the Union Budget 2026-27 presentation on February 1, 2026, Finance Minister Nirmala Sitharaman proposed the Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation) scheme. With a total outlay of ₹10,000 crore over the next five years, the program aims to develop India into a global biopharmaceutical manufacturing hub by building a self-reliant ecosystem for the domestic production of biologics and biosimilars. The initiative will catalyze investments in advanced biomanufacturing infrastructure and enhance capabilities in high-value, next-generation therapies.
Scaling Research and Workforce Capacity To reinforce India’s position as a preferred destination for clinical research, the budget announced the creation of a network of over 1,000 accredited clinical trial sites across the country. This expansion is intended to accelerate drug development timelines and improve patient access to cutting-edge therapies. Furthermore, the budget proposes establishing three new National Institutes of Pharmaceutical Education and Research (NIPERs) and upgrading the existing seven to foster a highly skilled workforce and industry-academia collaboration.
Comprehensive Health Ecosystem Upgrades Beyond manufacturing, the budget introduces several structural reforms to the broader healthcare system:
Allied Health Professionals (AHPs): 100,000 new AHPs will be added over five years through the upgradation and establishment of new institutions in disciplines like radiology and anesthesia.
Regional Medical Hubs: Five integrated healthcare complexes will be established in partnership with the private sector to promote medical value tourism.
AYUSH and Mental Health: Three new All India Institutes of Ayurveda will be set up, and the WHO Global Traditional Medicine Centre in Jamnagar will be upgraded. Additionally, National Mental Health Institutes in Ranchi and Tezpur will be elevated to regional apex institutions.
What is the core focus of the “Biopharma SHAKTI” scheme announced in Budget 2026-27? Biopharma SHAKTI focuses on positioning India as a global biomanufacturing leader by providing ₹10,000 crore over five years for the domestic production of biologics and biosimilars. It integrates manufacturing with research through a 1,000-site clinical trial network and education via the expansion of the NIPER system, aiming to reduce import dependence and enhance the quality of next-generation therapies.
Policy Relevance
The SHAKTI scheme represents a critical pivot from basic chemical pharmaceuticals to advanced biomanufacturing.
Reducing Import Dependence: By incentivizing the domestic production of high-value biologics, the policy addresses a strategic vulnerability in India’s healthcare security, where many complex life-saving drugs are currently imported.
Standardizing Regulatory Efficiency: The strengthening of the Central Drugs Standard Control Organisation (CDSCO) with a dedicated scientific review cadre is a move toward global regulatory harmonization, reducing the time-to-market for innovative drugs.
Services Export and Tourism: Launching Regional Medical Hubs specifically targets the high-growth “Medical Value Tourism” sector, leveraging India’s cost-competitiveness to generate foreign exchange.
Localized Geriatric Care: The goal to train 1.5 lakh caregivers in the coming year addresses India’s shifting demographic reality, creating a formal policy framework for geriatric and allied care services.
Relevant Question for Policy Stakeholders: How can the Department of Pharmaceuticals ensure that the 1,000 new clinical trial sites utilize “Real-World Evidence” (RWE) to speed up the regulatory approval of biosimilars under the SHAKTI framework?
Follow the full news here: BIOPHARMA SHAKTI
BUDGET PUSH TO MAKE INDIA A GLOBAL BIOPHARMA HUB