In a push for pharma sector, FM Nirmala Sitharaman proposes ‘Biopharma Shakti’ with Rs 10K crore outlay

The restructuring is expected to enable both institutions to support larger ticket infrastructure financing and long-gestation development projects.

• Government allocates Rs 10,000 crore for Biopharma Shakti over five years
• Biopharma Shakti to upgrade NIPERs and create 1,000 clinical trial sites
• Biocon shares rise as pharma stocks gain after budget announcement

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Finance Minister Nirmala Sitharaman in her Budget 2026 speech announced allocation of Rs 10,000 crore over the next five years under the "Biopharma Shakti" programme  to boost domestic production of biologics and biosimilars.

The government plans to create a biopharma-focused institutional network. “The strategy will include a biopharma-focused network with three new National Institutes of Pharmaceutical Education and Research, popularly known as NIPERs, and upgrading seven existing ones,” Sitharaman said on February 1.

"Biopharma Shakti" will focus on health advancement through knowledge, technology, and innovation. The minister said India's disease burden is observed to be shifting towards non-communicable diseases such as diabetes, cancer and autoimmune disorders.

"India's disease burden is observed to be shifting towards non-communicable diseases like diabetes, cancer and auto-immune diseases. Biological medicines are key to longevity and quality of life at affordable costs. To develop India as a global bio-pharma manufacturing hub, I propose the bio-pharma, Shakti, with an outlay of 10,000 crore over the next five years."

Under 'Biopharma Shakti', the government will create a network of 1,000 accredited India clinical trials sites. "We propose to strengthen the Central Drug Standard Control Organisation to meet global standards and approve timeframes through a dedicated scientific review and specialists," she added.

The programme is expected to boost capacity creation, reduce import dependence, and improve India’s competitiveness in high-value biopharmaceutical segments.

Biocon was the top gainer of the FM's annoucement, rising 2.5 percent to trade at Rs 375.90 a share at 11.15 am. Piramal Pharma, Sun Pharma, and Torrent Pharma also traded with strong gains.

IMARC Group estimates the market to reach USD 26.9 Billion by 2034, exhibiting a CAGR of 7.72% from 2026-2034. The market is growing notably, mainly impacted by government programmes aiding biopharmaceutical research, innovations in biotechnology, and magnifying need for advanced therapies. Furthermore, the market profits from elevating healthcare investments, cost-efficient manufacturing abilities, and a skilled labor force, positioning the region as a crucial player in the global biologics industry.