Union Budget 2026-27 Introduces ₹10,000 Cr Bio-Pharma SHAKTI Scheme

The Central Government, in the Union Budget 2026-27, proposed the Bio-Pharma SHAKTI Scheme with an expenditure of ₹10,000 crore. This scheme will create an ecosystem for the domestic production of biologics and biosimilars.

• The Central Government, in the Union Budget 2026-27, proposed the Bio-Pharma SHAKTI Scheme with an expenditure of ₹10,000 crore over five years. The objective of this initiative is to strengthen India’s ecosystem for the production of biologics and biosimilars.
• India’s bioeconomy has grown from USD 10 billion (2014) to USD 165.7 billion (2024), with a target of USD 300 billion by 2030.
• It contributes 4.25% to the national GDP. India’s bioeconomy is driven by four major sub-sectors: Bioindustrial (47%), Biopharma (35%), Bioagri (8%), and Bio Research (9%).
• It will create an ecosystem for the domestic production of biologics and biosimilars. To create new pathways for skilled careers for youth, the Finance Minister proposed interventions in several sectors, including the health sector.

Objectives of the ‘SHAKTI Scheme’

• Existing institutions for Allied Health Professionals (AHPs) will be upgraded and new AHP institutions will be established in the private and public sectors. This will include 10 selected disciplines such as optometry, radiology, anesthesia, OT technology, applied psychology and behavioral health, and 100,000 AHPs will be added over the next 5 years.
• (2) The Finance Minister said in her speech that a strong care ecosystem will be created, including elderly care and related services. Various NSQF-aligned programs will be developed to train multi-skilled caregivers by combining core care and related skills such as wellness, yoga, and the operation of medical and assistive devices. In addition, 1.5 lakh caregivers will be trained in the coming year.
• (3) To promote India as a hub for medical tourism services, the Union Budget proposes to launch a scheme to assist states, in partnership with the private sector, in setting up five regional medical hubs.
• These hubs will function as integrated healthcare complexes combining medical, educational and research facilities. They will include AYUSH centers, medical value tourism facilitation centers, and infrastructure for diagnostics, post-care and rehabilitation.
• These hubs will provide a wide range of job opportunities for healthcare professionals, including doctors and AHPs.
• The Government proposed the expansion and strengthening of a biopharma-focused network through the establishment of three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing NIPERs.
• The objective of this measure is to meet the growing need for highly specialized human resources in biopharma research, development, manufacturing and regulation.

The Finance Minister proposed:

• Establishing 3 new All India Institutes of Ayurveda;
• (ii) Upgrading AYUSH pharmacies and drug testing laboratories for higher standards of the certification ecosystem, and making more skilled personnel available;
• (iii) Upgrading the WHO Global Traditional Medicine Centre in Jamnagar to promote evidence-based research, training and awareness in traditional medicine.

NIMHANS-2

• The Finance Minister also highlighted the lack of national institutions for mental healthcare in North India. Therefore, the Union Budget announced the establishment of NIMHANS-2 and the upgradation of national mental health institutions in Ranchi and Tezpur as regional apex institutions.
• In addition, emergency capacities of district hospitals will be strengthened and enhanced by up to 50% by establishing emergency and trauma care centers.
• The Government also announced strengthening the regulatory framework for biologics, including enhancing the capacity of the Central Drugs Standard Control Organization. Speaking to the media, Science and Technology Minister Jitendra Singh said that India is among the very few countries that have a dedicated special policy for biotechnology.