Budget 2026: 'BioPharma Shakti' initiative with ₹10,000cr allocation announced
What's the story
Finance Minister Nirmala Sitharaman's announcement of a ₹10,000 crore allocation for the "Biopharma Shakti" program in Union Budget 2026 has sent pharma stocks soaring. The initiative, with a five-year outlay, aims to bolster domestic production of biologics and biosimilars. It is part of a larger strategy to make India a global hub for biopharmaceutical manufacturing.
Strategic initiative
Initiative to enhance India's biopharmaceutical capabilities
The 'BioPharma Shakti' initiative will focus on enhancing capacity creation, reducing import dependence, and making India more competitive in the high-value biopharmaceutical space. Sitharaman said, "I propose Bio Pharma Shakti with a proposal of ₹10,000 crore for next 5 years." The announcement was welcomed by market participants who expect this policy support to boost growth prospects for domestic pharma companies.
Market response
Positive impact on pharma stocks
The announcement has had a positive impact on several pharma stocks. Biocon's shares rose by up to 3% after Sitharaman's announcement. Other companies such as Piramal Pharma, Sun Pharma, and Dr. Reddy's Laboratories also saw their shares rise by 1-2%. Market participants are optimistic that this policy support will lead to stronger growth prospects for domestic pharma companies in complex generics, biologics, and contract manufacturing sectors.
Health
Comprehensive approach to boost India's biopharmaceutical sector
Sitharaman also unveiled a plan aimed at strengthening India's digital healthcare ecosystem, referred to as the BioPharma Strategy for Health Advancement through Knowledge, Technology, and Innovation. This move is seen as another step toward making India a global leader in the biopharmaceutical industry and improving access to high-quality medicines for all Indians.