New Delhi: Finance Minister Nirmala Sitharaman Sunday announced a Rs 10,000 crore ‘Biopharma Shakti’ programme that will run for over five years to support local production of biologics (medications from living organisms) and biosimilars (low-cost biologics) in the Union budget 2026-27.
Announcing the plan in Parliament, Sitharaman said India’s disease burden is shifting towards non-communicable diseases such as cancer, diabetes and autoimmune disorders, adding that biologic medicines play an important role in treatment but remain costly. “Biologic medicines are critical for improving longevity and quality of life, but their high cost limits access,” the finance minister said.
As part of the plan, three new National Institutes of Pharmaceutical Education and Research, or NIPERs, will be set up. These institutes train students and researchers in drug development. Seven existing NIPERs will also be upgraded.
Biologics include therapeutics based on large molecules—monoclonal antibodies, gene therapies, hormones, enzymes, oligonucleotides and others. These are called biologics because they are made from living cells or organisms.
Biologics are made from living cells or organisms. They include therapeutics based on large molecules—monoclonal antibodies, gene therapies, hormones, enzymes, oligonucleotides and others.
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They are used to treat diseases such as cancer, diabetes and autoimmune conditions. These medicines are different from regular chemical drugs because they are based on large and complex molecules.
Biosimilars on the other hand are lower-cost versions of biologic medicines. They are similar to generic drugs but are harder to make because biologics are more complex than ordinary medicines.
Dr T. Sundararaman, Global Coordinator of the People’s Health Movement and former head of the National Health Systems Resource Centre, said the announcement was long overdue. “One of the main areas of medical progress in the future is biologics,” he told ThePrint, adding that most of these medicines are “very costly” at present.
He said India needs to ensure both access and local production. “We need these medicines, but we also need the capacity to make them ourselves,” he said. He added that many civil society groups would welcome the move towards self-reliance.
Sundararaman also pointed to India’s dependence on imports for active pharmaceutical ingredients, or APIs. APIs are the main raw materials used to make medicines.
“While moving into this new area, we should not lose ground in areas where we were already strong,” he said.
On funding, he said Rs 10,000 crore is a fair beginning.
He also said public money should serve public interest. “If research is funded by the government, its benefits should remain with the public,” he said, cautioning against private control over publicly-funded work.
Dr Manisha Arora, Director, Internal Medicine at the C. K. Birla Hospital in New Delhi, said that the proposal can be a major step toward strengthening India’s biopharma ecosystem.
“By focusing on domestic production, regulatory upgrades, and infrastructure development, it can improve healthcare affordability… A key impact will be the expansion of biosimilars, cost-effective alternatives to complex biologic medicines such as insulin and monoclonal antibodies,” she said.
She added that greater competition in biosimilar manufacturing can reduce treatment costs and expand access to therapies for chronic conditions like cancer, diabetes, and autoimmune diseases.
The government also plans to create a network of 1,000 approved clinical trial sites, where new medicines are tested on patients before approval.
The Central Drugs Standard Control Organisation, which approves medicines in India, will also be strengthened. The minister said this will help speed up approvals and meet global standards.
(Edited by Viny Mishra)
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