New Delhi, Feb 3: The Union Health Budget for 2026 has introduced a transformative approach to bolster India's healthcare sector, with a focus on self-reliance and global credibility in the long term.
The central highlight of the budget is the ₹10,000 crore Biopharma Shakti initiative, which aims to position India as a global leader in life sciences innovation and advanced biopharma manufacturing. According to Mayank Singhal, Vice Chairperson & Managing Director of PI Industries, this initiative will significantly strengthen India’s research, talent pool, and innovation ecosystem, particularly in high-value biologics and advanced therapeutics. The expansion and modernization of National Institutes of Pharmaceutical Education and Research (NIPERs), along with enhanced capabilities for the Central Drugs Standard Control Organization (CDSCO), will improve regulatory efficiency and boost India's credibility on the global stage.
Singhal emphasized that the integrated approach to innovation and manufacturing will accelerate innovation pipelines and foster deeper global collaborations.
Dr. GSK Velu, Chairman & Managing Director of Trivitron Healthcare, Maxivision Eye Hospitals & Neuberg Diagnostics, added that the budget marks a strategic shift for India, transitioning from volume-driven pharmaceutical production to a value-driven global leadership model. The Biopharma Shakti initiative, he explained, anchors this shift, while reforms in regulatory and manufacturing sectors will help streamline compliance and reduce operational burdens.
Velu also highlighted the ₹10,000 crore allocation to strengthen the biopharma, biotech, and life sciences ecosystem. This funding, along with support for drug regulatory frameworks and R&D in biopharma, will raise quality benchmarks and align Indian innovations with global standards. A key focus of the budget is improving the transition of research from the lab to patient care, fostering collaboration between the pharmaceutical industry, academia, and healthcare providers.
Further, the budget includes provisions for patient welfare, which were warmly welcomed by the All India Organization of Chemists and Druggists (AIOCD). According to JS Shinde, President, and Rajiv Singhal, General Secretary of AIOCD, the decision to fully exempt 36 life-saving medicines—particularly for cancer and other critical diseases from Basic Customs Duty (BCD) is a compassionate and humanitarian step. This move will drastically reduce treatment costs, making life-saving therapies more affordable for patients.
In addition, the inclusion of 37 new medicines and 13 new programs under patient assistance initiatives reflects the government’s prioritization of patient welfare, they noted.
The budget also earmarks the establishment of three new NIPERs and the upgrading of seven existing institutions. These upgrades will boost pharmaceutical education, promote quality research, and enhance skilled human resource development. These efforts are expected to create a strong bridge between industry and academia, preparing the next generation of professionals for leadership in the pharmaceutical and healthcare sectors.
Dr. Gowthami AV, CEO of Yatharth Hospital, Noida, lauded the government's focus on upgrading training and infrastructure for allied health professionals. This initiative, which includes modernizing curricula and enhancing hands-on skill development, aims to address the critical workforce gap in diagnostics, rehabilitation, emergency care, and clinical support services. By improving the allied health workforce, the initiative will not only enhance patient outcomes but also reduce pressure on doctors and hospitals, ensuring better healthcare accessibility and quality across both urban and rural areas.
The Union Budget 2026 lays the foundation for India to emerge as a global healthcare powerhouse, enhancing its capabilities in biopharma, medical devices, pharmaceuticals, and allied healthcare, while ensuring patient welfare and affordable treatment options. The roadmap outlined in the budget promises a brighter, more self-reliant healthcare future for the nation.
