Union Budget 2026: Key Pharma Reforms and Industry Reactions

Union Budget 2026 gives a huge boost to the Indian pharma industry as Finance Minister Nirmala Sitharaman announced a Rs 10,000 crore plan over five years called Biopharma SHAKTI to grow India’s biologics and biosimilars industry. The capital will assist in the construction and development of manufacturing plants and the establishment of a network of 1,000 accredited clinical trial sites to accelerate the drug testing. The industry leaders have provided their responses, offering a reflection on how the budget would influence the future of the pharmaceutical sector in India.

Mandeep Singh Kumar, Managing Director & Vice President, Medtronic India:

“The Union Budget 2026-27 is a significant leap for India’s healthcare, with a focus on innovation, technology, and talent. The Rs 10,000 crore Biopharma Shakti program will fuel R&D and innovation, enhancing clinical capacity. The proposal to train 1 lakh allied health professionals and 1.5 lakh caregivers will help scale healthcare services and ensure safe deployment of advanced medical technologies. These efforts will not only improve healthcare access across India but also position India as a leader in healthcare innovation.”

Aditya Sharma, Head of Process Solutions, India Region, Merck Life Science:

“Union Budget 2026’s Biopharma Shakti initiative is a pivotal move to position India as a global biopharma manufacturing hub. With a Rs 10,000 crore investment, the program strengthens India’s capabilities in biologics, biosimilars, and research. The Budget’s focus on upgrading clinical trial infrastructure, creating a network of accredited sites, and enhancing the CDSCO for faster approvals ensures that India will lead in innovation. These measures foster a robust ecosystem that accelerates the development and manufacturing of next-generation therapies in India.”

Sanjay Bhutani, Managing Director, Bausch & Lomb:

“In the backdrop of GDP growth and improving domestic consumption, the Union Budget strikes a prudent balance between growth and predictability. Reducing the Debt to GDP ratio and fiscal deficit reinforces macro stability. The focus on healthcare, with duty exemptions on lifesaving drugs and strengthening medical tourism hubs, will significantly reduce input costs. Additionally, correcting inverted duty structures on key components will help India make advanced medical devices, lowering costs while promoting domestic production and innovation in the healthcare and MedTech sectors."

Sachin Joshi, Founder and Managing Director, PharmNXT:

“The Union Budget 2026-27 signals a strong pro-innovation approach to India’s life sciences ecosystem, with a focus on Biopharma SHAKTI. The Rs 10,000 crore commitment for biologics and biosimilars, along with the expansion of NIPER capacity and 1,000 accredited clinical trial sites, will strengthen India’s position as a global hub for biomanufacturing and R&D. Customs rationalization for critical inputs and therapies further supports the ecosystem, accelerating India’s growth in the global healthcare market while ensuring faster, more compliant development of therapies.”

Also Read: Bridging Collaboration Gaps to Boost India's Pharma Discovery

Dr. Dharminder Nagar, Co-Chair, FICCI Health and Services and MD, Paras Health:

“The Union Budget offers reassurance to patients and families facing rising healthcare costs, especially in Tier 2 and 3 cities. The focus on biopharma manufacturing supports the affordability of advanced treatments like cancer and diabetes therapies. By incentivizing the production of biologics and biosimilars, the Budget ensures that therapies will be more accessible across India, reducing treatment costs. Initiatives like the expansion of allied healthcare professionals and the creation of regional medical tourism hubs will also improve healthcare quality and access."

Gautam Khanna, CEO, P.D. Hinduja Hospital & Medical Research Centre:

"The Union Budget 2026-27 strengthens India’s healthcare system with a focus on affordability, expanding the workforce, and enhancing infrastructure. The addition of 1 lakh Allied Healthcare Professionals and the establishment of regional medical hubs will address critical healthcare gaps. Key measures like the exemption of Basic Customs Duty on lifesaving drugs and the training of caregivers will ease patient access, reduce out-of-pocket expenses, and improve care, especially for India’s growing elderly population. Overall, it provides a foundation for future healthcare growth."

Arushi Jain, Director of Akums Drugs & Pharmaceuticals Ltd:

“The Union Budget 2026 is a transformative step for India’s healthcare and biopharma sectors. The Rs 10,000 crore Biopharma Shakti program, expanded clinical trial networks, and stronger regulatory systems promote innovation and manufacturing. The focus on traditional medicine, alongside infrastructure for Ayurveda, strengthens India’s integrated healthcare approach. Additionally, the introduction of more skilled healthcare professionals and duty exemptions for critical and rare disease medicines will reduce costs for patients while positioning India as a global hub for healthcare solutions and biopharma innovation.”

Also Read: India's Innovative Therapies Set Global Standard at Low Cost

Gaurav Soni, Founder and Managing Director, Botanic Healthcare:

“The Union Budget 2026 paves the way for healthcare to shift from volume-led to value- and innovation-driven growth. Strengthening biopharma capabilities, domestic manufacturing, and R&D sets the stage for India’s healthcare evolution. The budget’s focus on preventive health and wellness, alongside key fiscal incentives, is a significant step forward. For the industry, it’s an opportunity to invest deeper in quality, clinical validation, and global-grade manufacturing, ensuring that India not only meets domestic demand but also strengthens its position as a trusted health innovation hub globally.”

Saransh Chaudhary, President, Global Critical Care, Venus Remedies and CEO, Venus Medicine Research Centre (VMRC):

“The Union Budget 2026-27 reflects a shift toward knowledge-led, science-driven growth in India’s pharmaceutical sector. Initiatives like Biopharma SHAKTI, expanded clinical trial infrastructure, and strengthened regulatory systems will propel India’s pharma industry to new heights. For areas like critical care and antimicrobial resistance, these reforms are crucial. The Budget’s focus on affordability, with duty exemptions on cancer and rare disease medicines, supports patient access. The creation of an SME Growth Fund also helps build global champions in the pharmaceutical ecosystem.”

Final Thoughts

The Union Budget 2026 sets a solid foundation for India’s healthcare evolution, strengthening infrastructure, innovation, and access while positioning India as a global leader in biopharma and healthcare solutions.