India Pharma Outlook Team | Friday, 06 February 2026
Gujarat Chief Minister Bhupendra Patel welcomed the Union Budget 2026-27, emphasizing that it will directly benefit the state’s MSME, pharma, and semiconductor sectors while improving liquidity.
In an appeal to the media, Patel noted that the budget is driving the vision of the country towards a Viksit Bharat 2047 and enhancing the status of Gujarat as a critical industrial state.
The budget allocates Rs 10,000 crore for the pharma sector, aiming to transform India into a global bio-pharma manufacturing leader. “Gujarat is a leader in the pharmaceutical sector, and the state’s industry will benefit from the Bio-Pharma Shakti Programme,” Patel said. Additionally, the creation of a Rs 10,000 crore SME Fund will provide a much-needed boost to Gujarat's MSME sector, enhancing liquidity and supporting growth.
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Another occasion that was celebrated by Patel is the India Semiconductor Mission 2.0 which will have a positive impact on the emerging semiconductor industry in Gujarat where the state had already four plants. Regarding infrastructure, he indicated the new dedicated freight corridor between Surat and West Bengal at Dankuni that will improve trade and logistics.
In railways, CM observed that there was a sizeable restriction to Gujarat of Rs 17,366 crore to fund the current railway projects amounting to Rs 1.28 lakh crore. Another move that Patel was not afraid of was to extend the 10 years tax holiday in GIFT City to 20 years with the objective of triggering more long term investments. Finally, the CM mentioned the amplified Central devolution of Gujarat whose devolution will now grow by 3.48 to 3.75.
Addressing Union Budget 2026 Shweta Rai, Managing Director, India and Country Division Head, South Asia, Bayer Pharmaceuticals said, “The Union Budget 2026 positions healthcare and life sciences as a critical pillar of India’s long-term economic and social progress, aligned with the vision of Viksit Bharat. We welcome the government’s focus on the Biopharma Shakti initiative, with an outlay of ?10,000 crore over the next five years, which will strengthen domestic biopharma manufacturing and research and development capabilities.”
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She further added that the Budget's emphasis on supportive R&D tax incentives will further encourage innovation in biologics and biosimilars while rationalization of customs duties on APIs, raw material and medical devices will strengthen domestic value chains.
In parallel, patient-focused measures addressing India’s growing non-communicable disease burden, including the exemption of Basic Customs Duty on 17 drugs and medicines and the addition of seven rare diseases under import duty exemption for personal medical use, will help improve access to critical therapies. She particularly appreciate the measures aimed at strengthening clinical research capabilities through a nationwide network of 1,000 accredited clinical trial sites, alongside efforts to enhance the capacity of the Central Drugs Standard Control Organisation to enable globally aligned regulatory standards and faster approval timelines.
These steps will support innovation, translate scientific advances into real-world clinical impact, improve patient access to high-quality therapies, and reinforce India’s transition from volume-based manufacturing to value-driven pharmaceutical leadership. “We look forward to continued collaboration with the government to advance healthcare innovation and long-term health outcomes for patients in India and health for all,” she added.
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