- Union Budget launches BioPharma Shakti with Rs 10,000 crore for biologics manufacturing
- Three new NIPERs and upgrades to seven institutions announced for drug research
- National Clinical Trial Network to create 1,000 accredited sites for clinical research
The Union Budget presented by Finance Minister Nirmala Sitharaman in Parliament on Sunday on healthcare and pharmaceuticals pushed biopharma manufacturing, research, and skilled manpower.
The Finance Minister announced the launch of 'BioPharma Shakti', a new national programme with an outlay of Rs 10,000 crore over five years, aimed at transforming India into a global hub for biologics and biosimilars manufacturing.
Presenting the Budget, Sitharaman said the initiative would strengthen domestic capabilities in advanced therapies used for cancer, diabetes, and autoimmune disorders, while reducing import dependence and supporting high-value manufacturing.
As part of the biopharma push, the Budget proposes the setting up of three new National Institutes of Pharmaceutical Education and Research (NIPERs), along with the upgradation of seven existing institutions, to strengthen advanced drug research, regulatory science, and skilled manpower development .
National Clinical Trial Network
To accelerate drug development, the Finance Minister announced the creation of a network of 1,000 accredited clinical trial sites across the country. The move is aimed at positioning India as a preferred global destination for clinical research while improving patient access to innovative therapies .
Focus on Mental Health
Mental health received renewed attention in the Union Budget with the government announcing the expansion of national-level mental health infrastructure, including a second campus of National Institute of Mental Health and Neurosciences (NIMHANS).
In her Budget speech, the Finance Minister said the government would establish NIMHANS 2.0 in North India, in Ranchi and Tezpur, which will function as regional hubs for treatment, education and research in mental health and neurosciences.
While the Finance Minister outlined major institutional expansions, the Budget speech did not specify a separate line-item allocation for mental health programmes. Funding for mental healthcare continues to be routed through existing mechanisms such as institutional grants, the National Mental Health Programme and allied health initiatives.
The Budget also announced steps to expand the allied healthcare workforce, with new training institutions across multiple disciplines. The government aims to train a large pool of multi-skilled healthcare professionals to address gaps in service delivery, particularly in tier-2 and tier-3 cities.
Also Read: Union Budget 2026: Duty Relief On Cancer Drugs, Import Exemptions For Rare Diseases
Medical Tourism
To strengthen India's global healthcare footprint, the Finance Minister proposed the development of five regional medical tourism hubs, to be set up in partnership with state governments and the private sector. These hubs will integrate modern medical care with AYUSH-based treatments.
The Budget also includes measures to upgrade drug testing laboratories and strengthen quality standards across pharmaceuticals and traditional medicine systems, aimed at ensuring patient safety and global compliance.
Relief for Cancer patients
The Union Budget announced customs duty exemptions on 17 critical cancer medicines to make treatment more affordable.
In her Budget speech, the Finance Minister said the government will fully exempt basic customs duty on select cancer drugs, many of which are imported and form a major component of treatment costs for patients.
Imported oncology drugs often attract customs duties that substantially increase their final retail price. The duty exemption is expected to lower costs for patients undergoing long-term cancer treatment, easing the financial burden on families.
"The customs duty exemption on 17 cancer drugs will improve affordability and help patients adhere to treatment. These strategic investments are expected to lower long-term healthcare costs and contribute to a more resilient, research-driven health system," said Dr Abhishek Shankar, Assistant Professor, Radiation Oncology, AIIMS Delhi.
Rare Disease Drugs Also Covered
Alongside cancer medicines, the Finance Minister announced that seven additional rare diseases will be covered under customs duty exemptions for personal imports of medicines, medical foods and specialised therapies that are not manufactured domestically.
Also Read: Union Budget 2026: 5 Regional Ayush Medical Hubs, New Ayurveda Institutes Announced
Industry Responses
Dr Ashutosh Raghuvanshi, Managing Director & CEO, Fortis Healthcare says the budget represents the country's focus on healthcare growth. "The Rs 10,000-crore BioPharma Shakti initiative, expansion of NIPERs and the proposed national clinical trial network will strengthen India's capabilities in biologics and biosimilars. The focus on district-level cancer care, medical education and lifestyle diseases reflects a forward-looking response to the country's changing disease burden", he said.
While the former National President, Indian Medical Association, Dr Ravi Wankhedkar calls it a "bland budget". He notes, "the budget falls short of addressing core public health priorities. While pharmaceuticals and AYUSH have received attention, primary healthcare and public health infrastructure remain neglected. There is little support for domestic medical device manufacturing, and health allocations show no meaningful increase in real terms. Strengthening paramedical manpower is a positive step, but overall, the Budget misses an opportunity to reinforce primary healthcare systems."
Appreciating the proposal to set up five regional medical hubs, including AYUSH facilities, Dr Mukesh Batra, Founder-Chairman Emeritus, Dr Batra's Healthcare, said, "this addresses gaps in continuity of care for chronic and lifestyle diseases by combining diagnostics, rehabilitation and follow-up services. Strengthening quality standards and allied health education will be key to ensuring these models deliver credible and scalable outcomes."
"By placing biopharma at the centre of its manufacturing strategy, the Budget responds to India's rising burden of cancer, diabetes and autoimmune disorders," emphasized Sheetal Arora, Promoter & CEO, Mankind Pharma.
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