What's Happening?
India's Union Budget 2026, presented by Finance Minister Nirmala Sitharaman, introduces the 'Biopharma SHAKTI' initiative, allocating ₹10,000 crore over five years to strengthen India's position as a global
hub for biopharma manufacturing. This initiative, part of the Strategy for Healthcare Advancement through Knowledge, Technology, and Innovation, aims to reduce dependency on imports by boosting domestic production of biologics and biosimilars. The plan includes establishing new National Institutes of Pharmaceutical Education and Research and upgrading existing ones, alongside creating a network of over 1,000 clinical trial sites. The budget also proposes strengthening the Central Drugs Standard Control Organisation to align with global standards. These measures are expected to lower costs for critical therapies, particularly for cancer patients and those with rare conditions, by exempting basic customs duty on 17 drugs and extending duty-free personal imports for treatments related to rare diseases.
Why It's Important?
The initiative is crucial as it addresses vulnerabilities exposed during the COVID-19 pandemic, particularly India's reliance on imported active pharmaceutical ingredients and medical devices. By promoting domestic manufacturing, the initiative aims to enhance India's resilience against future health emergencies and solidify its status as the 'Pharmacy of the World.' The increased healthcare allocations in the budget underscore the government's commitment to long-term capacity building in the sector. Analysts predict that this focus on bio-pharma will drive innovation, create jobs, and attract global investments, further integrating India into the international bio-pharma landscape. The initiative aligns with India's broader goal of becoming a developed nation by 2047.
What's Next?
The implementation of the Biopharma SHAKTI initiative will likely see increased investments in India's biopharma sector, with potential collaborations between domestic and international companies. The establishment of new research institutes and clinical trial sites is expected to accelerate research and development, fostering innovation in the sector. The government's focus on reducing approval timelines and aligning with global standards may enhance India's competitiveness in the global market. As the initiative progresses, stakeholders will be keenly observing its impact on reducing import dependency and boosting domestic production capabilities.
