To make India a global center for biopharma manufacturing, Union Finance minister Mrs Nirmala Sitharaman announced a dedicated ?10,000-crore, five-year programme to develop India as a global biopharmaceutical manufacturing hub.

This program will shift focus away from generics medicines and direct funds towards quicker development of biosimilars and biologics to treat a range of non-communicable diseases.  The biotech industry has been urging the government to focus on this sector due its long-term global potential.

The move aims to boost manufacturing, regulation, and clinical trials, positioning India for future global competition.

Mrs. Sitharaman said in her budget speech, "India's disease burden is observed to be shifting towards non-communicable diseases, like diabetes, cancer and autoimmune disorders. Biologic medicines are key to longevity and quality of life at affordable costs. To develop India as a global biopharma manufacturing hub, I propose the Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation) with an outlay of ?10,000 crore over the next five years." 

Welcoming the announcement, Dr. Kiran Mazumdar-Shaw, executive chairperson of Biocon and non-executive chairperson of ABLE, said, "This initiative-spanning manufacturing scale-up, global-grade regulation, new NIPER (National Institutes of Pharmaceutical Education and Research) institutions and a nationwide clinical trials network-can firmly position India as a global biopharma manufacturing hub."

Mr Sujay Shetty, global health advisory leader at PwC, told Economic Times that the proposal to set up 1,000 accredited clinical trial sites and strengthen regulatory capacity is a crucial signal that India is serious about innovation and biosimilars.

Added, Dr Annaswamy Vaidheesh, former managing director of GlaxoSmithKline Pharmaceuticals, "The timing is driven by the upcoming global biologics patent cliff and intensifying competition. Countries like China and South Korea are scaling biosimilars rapidly with strong state backing. India needs to move from cost advantage to scale, quality and regulatory credibility."

The announcement was made during the Budget on February 1, 2026.