India’s Bio Pharma Shakti scheme signals end of import reliance

The national initiative targets drug affordability and R&D expansion.

India’s Union Budget 2026–27 has proposed the launch of “Bio Pharma Shakti,” a national initiative backed by a dedicated outlay of INR 10,000 crore over the next five years, to strengthen the country’s leadership in advanced therapeutics.

The initiative aims to reduce import dependence, improve drug affordability, and reinforce India’s position as a global biopharmaceutical manufacturing hub, whilst fostering high-end research and innovation.

The government will establish a nationwide biopharma-focused academic and research network, including the creation of three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing NIPERs.

These institutions will foster industry–academia collaboration and develop skilled manpower, according to a press release.

The budget also proposes establishing a national network of 1,000 accredited clinical trial sites, positioning India as a preferred destination for ethical and efficient clinical trials.

Plans to strengthen the drug regulatory framework include augmenting the scientific capacity of the Central Drugs Standard Control Organisation, the proposal said.

These measures aim to reduce regulatory burdens, improve the ease of doing business, and encourage pharmaceutical research and development.

The Department of Health Research will receive an enhanced allocation of over INR 4,821 crore, a 24% increase from the previous year.

The Indian Council of Medical Research will also receive INR 4,000 crore, nearly a 27% rise from the prior year’s revised estimates.

The government announced a full exemption from basic customs duty on 17 life-saving drugs, with particular focus on cancer treatments.

Seven new rare diseases will also qualify for import duty exemptions on drugs and medicines, reducing the financial burden on patients, the press release noted.

These biopharmaceutical initiatives form part of a broader 10% increase in the Ministry of Health and Family Welfare’s budget, which reached INR 1,06,530.42 crore for the revised estimate of financial year 2026–27.

The government stated that these focused policy measures aim to accelerate the transformation of India’s healthcare ecosystem in line with the vision of Viksit Bharat@2047.