Global Biopharma Hub

Context

Union Budget 2026–27 proposed the Biopharma SHAKTI with an outlay of Rs. 10,000 crores over five years, aimed at strengthening India’s ecosystem for production of biologics and biosimilars.

Introduction

The Union Budget 2026–27 marks a decisive shift in India’s approach to pharmaceuticals by placing biopharma and biologic medicines at the centre of its healthcare and manufacturing strategy. This aligns with the Government of India’s vision of transforming India into a leading global biopharma industry and capturing 5% of the global biopharmaceutical market share.

Acknowledging the growing burden of non-communicable diseases and the increasing global reliance on biologics and biosimilars, the Budget positions biopharma as a high-value, future-facing segment critical for both public health and economic growth.

Biopharma involves production, manufacturing, or extraction of therapies through biological organisms, such as human cells, fungi, or microbes. Some examples of biopharmaceuticals include vaccines, antibody treatments, gene therapies, cell implants, modern insulin, and recombinant protein drugs.

Biopharma

• Biopharma (Biopharmaceuticals):
  • Biopharma is a branch of the pharmaceutical industry that develops and produces medicines using living organisms, instead of depending only on chemical methods.
• How biopharma medicines are made:
  • These medicines are created using biological systems such as human cells, bacteria, yeast, or other microbes.
• Examples of biopharmaceutical products:
  • They include vaccines, monoclonal antibodies, gene therapies, cell-based therapies, advanced insulin, and recombinant protein drugs.
• Government’s aim:
  • To make India a major global hub for biopharma and secure about 5% of the global biopharmaceutical market.

Key Budget Announcements for Biopharma

• Biopharma SHAKTI:
  • This initiative aims to promote Indian companies in developing and manufacturing high-value biopharmaceutical products and to strengthen India’s position in the global biologics supply chain.
• Establishment of National Institutes:
  • The government plans to set up three new NIPERs and upgrade seven existing NIPERs.
    This step is meant to meet the rising demand for highly skilled professionals in biopharma research, manufacturing, quality control, and regulation.
• Strengthening the research ecosystem:
  • A nationwide clinical research network will be created, with plans for over 1,000 accredited clinical trial sites.
    This will boost India’s ability to conduct advanced clinical trials, especially for biologics and biosimilars.
• Regulatory framework:
  • The capacity of the CDSCO will be strengthened by hiring specialised scientific and technical experts.
    The objective is to speed up approvals and bring India’s regulatory timelines in line with global standards.

Government Initiatives to Strengthen India’s Biopharma Sector

• National Biopharma Mission (NBM):
  • The National Biopharma Mission, also called Innovate in India (i3), was launched in 2017 to help make India a $100 billion global biotechnology hub.
    It is jointly funded by the World Bank and implemented by Biotechnology Industry Research Assistance Council (BIRAC).
    The mission supports the development of new vaccines, biotherapeutics, diagnostics, and medical devices, while also aiming to make medicines cheaper and more widely available.
• BIRAC-led biotech innovation support:
  • BIRAC, set up in 2012 under the Department of Biotechnology (DBT), helps startups and companies by providing funding, incubation facilities, and expert mentoring to encourage innovation in biotechnology.
• Manufacturing and industrial strengthening measures:
  • The government has launched schemes like the PLI Scheme for Pharmaceuticals, Strengthening of Pharmaceutical Industry (SPI) scheme, and the Bulk Drug Parks Scheme to boost domestic manufacturing and reduce dependence on imports.
• Promotion of Research and Innovation in Pharma-MedTech (PRIP):
  • The PRIP scheme, launched in 2023, aims to turn India into a globally competitive and innovation-led Pharma and Medical Technology sector.
• BioE3 Policy:
  • The BioE3 (Biotechnology for Economy, Environment and Employment) Policy, approved in 2024, focuses on setting up biomanufacturing facilities, Bio-AI hubs, and biofoundries to support sustainable development and a Viksit Bharat.
• Bio-RIDE Scheme:
  The Bio-RIDE scheme, launched in 2024, brought together earlier DBT schemes under one umbrella and added a new focus on biomanufacturing and biofoundries.
  It has three main pillars:

• Biotechnology Research and Development (R&D)
• Industrial and Entrepreneurship Development (I&ED)
• Biomanufacturing and Biofoundry

Conclusion

All these initiatives clearly show that the government is following a well-planned and coordinated strategy to build a strong and self-reliant biopharma ecosystem in India. The focus covers the entire value chain—from research and innovation to manufacturing and entrepreneurship.

In this context, the Biopharma SHAKTI scheme announced in the Union Budget 2026–27 stands out as an important policy step to further strengthen and accelerate the growth of India’s biopharmaceutical sector.