Key Summary
- Plan to set up 1,000 clinical trial sites and strengthen the Central Drugs Standard Control Organisation.
- Dr Reddy’s Laboratories chairman Satish Reddy said the emphasis on biologics and biosimilars is timely.
- Pharmexcil chairman Namit Joshi said pharma exports are a critical contributor to India’s foreign exchange earnings.
India's pharmaceutical industry leaders have welcomed the Narendra Modi government's plan to allocate £804.75 million in the union budget to develop the biopharma sector over the next five years.
The budget has also proposed setting up 1,000 clinical trial sites and strengthening the Central Drugs Standard Control Organisation.
“By placing biopharma among the seven strategic frontier sectors and launching Biopharma Shakti, the union budget makes a decisive investment in India’s health and innovation future,” Biocon Group chairperson Kiran Mazumdar Shaw said in a statement.
As India’s disease burden shifts toward cancer, diabetes and autoimmune disorders, biologics and biosimilars will be central to improving longevity and quality of life, she added.
“This initiative - spanning manufacturing scale-up, global-grade regulation, new NIPER institutions and a nationwide clinical trials network - can firmly position India as a global biopharma manufacturing hub,” she added.
Dr Reddy’s Laboratories chairman Satish Reddy said the emphasis on biologics and biosimilars is particularly timely, as India is at the cusp of taking a global lead in this space.
“The Biopharma Shakti will be a key enabler for India’s journey from volume to value leadership, helping the country move from being a global supplier of quality medicines to becoming a global innovator,” he added.
Indian Pharmaceutical Alliance secretary general Sudarshan Jain said the budget demonstrates a policy focus on science and healthcare to prepare India for the future.
Pharmexcil chairman Namit Joshi said pharma exports today are a critical contributor to India’s trade balance, foreign exchange earnings, and global health security.
“And this is driven largely by MSMEs that form the backbone of the export ecosystem. The announcement of the Biopharma Shakti project marks a historic and strategic shift in India’s pharmaceutical journey - from being a global leader in generics to emerging as a global bio-pharma manufacturing powerhouse,” he added.
FICCI Pharma Committee co-chair and MD & GCEO (Designate), Cipla Limited Achin Gupta said, "The Union Budget 2026 signals a strong commitment towards strengthening India’s pharmaceutical and healthcare ecosystem, with a clear emphasis on innovation, research and value-driven growth.
"The budget’s focus on building long-term capabilities will help the sector move towards higher-end manufacturing, advanced therapies and improved access to quality healthcare solutions."
Deloitte India Partner Joydeep Ghosh said the biologics sub-segment is essential to conquer shifting disease incidence and make new-age therapies affordable and accessible on the one hand, and vital to capture the large patent cliffs coming up in the next four years in the international markets.
In addition, strengthening the Central Drugs Standard Control Organisation with a dedicated scientific cadre, to meet global standards and approval timeframes, are steps clearly in the direction of positioning India capable of becoming a global biopharma hub in the next few years, he added.
“Besides, removal of import duty from 17 cancer drugs and 7 more rare diseases and Food for Special Medical Purposes (FSMP) are right steps towards easing access to requisite medicines and treatment,” Ghosh said.
Apollo Hospitals founder and chairman Prathap C Reddy said the Budget sends a reassuring message that India’s growth will be anchored in healthier citizens and stronger health systems.
The continued focus on expanding public health capacity, strengthening prevention, and improving access across tier-2 and tier-3 India is consistent with the vision of Viksit Bharat, he added.
