The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, outlines a forward-looking strategy to bolster India’s growth engines, with strong emphasis on healthcare innovation, biopharmaceutical self-reliance, infrastructure-driven consumption, education-employability linkage, and financial sector reforms. The budget positions India as a global hub in high-value sectors like biologics while addressing rising non-communicable diseases and urban economic expansion.
Major Push for Biopharma and Healthcare
A flagship announcement is the launch of Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation), with an outlay of ₹10,000 crore over the next five years. This initiative aims to build a robust ecosystem for domestic production of biologics and biosimilars, targeting India’s transformation into a leading global biopharma manufacturing hub.
Key components include establishing three new National Institutes of Pharmaceutical Education and Research (NIPERs), upgrading seven existing ones, creating a network of over 1,000 accredited clinical trial sites, and strengthening the Central Drugs Standard Control Organisation (CDSCO) through a dedicated scientific review cadre and specialists to align with global standards and expedite approvals.
Industry leaders welcomed the move as timely and transformative.
Shreehas Tambe, CEO & MD, Biocon Biologics, described it as a “well-timed and much-needed step,” especially alongside the earlier ₹1 lakh crore commitment to research and innovation. He highlighted the focus on non-communicable diseases like cancer, diabetes, and autoimmune disorders, and the emphasis on affordable biosimilars as the new standard of care.
He added: “Encouraging investment in advanced manufacturing, building global scale, and strengthening regulatory capacity… are all critical to meeting global benchmarks. Equally transformative is the emphasis on academic research, skill development, training and clinical infrastructure through new and upgraded NIPERs and accredited trial sites. These steps reinforce Atmanirbhar Bharat while positioning India as a credible global biopharma hub delivering affordable, high-quality complex therapies at scale. At Biocon we are fully ready to support India’s march to be a leader in biopharma.”
Ashok Nair, Managing Director, RPG Life Sciences, called Biopharma Shakti “a strong and timely signal” for scaling biosimilars capabilities and competing globally. He noted: “What makes this announcement practical, not just aspirational, is the focus on enabling infrastructure… For RPG Life Sciences, the value will come from improved ecosystem readiness, especially clinical-trial output and predictable regulatory timelines. These enablers can potentially accelerate market entry and expand patient access, subject to effective and timely implementation.”
Additional healthcare measures include customs duty exemptions on 17 critical cancer drugs to enhance affordability, alongside the creation of regional medical tourism hubs.
Aryaman Tandon, Managing Partner – Healthcare and Lifesciences at Praxis Global Alliance, said: “Healthcare and lifesciences emerge as a strategic priority with targeted investments across manufacturing, skills, and access. The launch of Biopharma SHAKTI with an outlay of over US$1.2B, expansion of pharmaceutical education infrastructure, creation of regional medical tourism hubs, and customs duty exemption on 17 critical cancer drugs will strengthen India’s healthcare ecosystem while improving affordability and global competitiveness.”
Boost to Consumption, Infrastructure, and Tourism
The budget reinforces consumption as a long-term growth driver through urban infrastructure and connectivity enhancements. It introduces City Economic Regions with allocations of nearly US$600 million (approximately ₹5,000 crore) per region, alongside seven high-speed rail corridors, expanded freight networks, and tourism digitisation initiatives.
Madhur Singhal, Managing Partner and CEO – Consumer and Internet at Praxis Global Alliance, observed: “The Union Budget 2026 reinforces consumption as a long-term growth engine through large-scale investments in urban infrastructure, connectivity, and tourism. The introduction of City Economic Regions with allocations of nearly US$600M per region, alongside seven high-speed rail corridors, expanded freight networks, and tourism digitisation initiatives, will materially enhance market access and consumer demand. These measures are expected to drive sustained growth across retail, travel, e-commerce, and digital consumer platforms.”
Focus on Education, Employability, and Financial Services
Education shifts toward outcomes and employability, with initiatives like five university townships, large-scale AVGC (Animation, Visual Effects, Gaming, Comics) skilling, and training for over 250,000 professionals in allied health, caregiving, and veterinary services.
Dr Vishakha Gandhi, Associate Vice President – Education and Employability, noted: “The Budget makes a decisive shift from access to outcomes by linking education directly with employability. Initiatives such as five university townships, large-scale AVGC skilling, and training of over 250,000 professionals across allied health, caregiving, and veterinary services reflect a future-ready workforce strategy. These measures align education systems with the evolving needs of the services, healthcare, and digital economy.”
In financial services, measures to improve credit flow, market depth, and capital formation include a High-Level Committee on Banking, restructuring of public sector NBFCs, incentives for large municipal bond issuances, and expanded MSME financing platforms.
Sandeep Ghosh, Practice Leader – Financial Services, commented: “The Budget strengthens the financial system by improving credit flow, market depth, and capital formation. Measures such as the proposed High-Level Committee on Banking, restructuring of public sector NBFCs, incentives for municipal bond issuances above US$120M, and expansion of MSME financing platforms will enhance liquidity and investor confidence, supporting sustained economic growth.”
Overall, the Union Budget 2026-27 signals a bold, integrated approach to innovation-led growth, self-reliance in strategic sectors, and inclusive development, drawing praise from industry experts for its practical enablers and long-term vision. Effective implementation will be key to realizing these ambitions.
Last Updated on: Tuesday, February 3, 2026 8:10 pm by News Vent Team | Published by: News Vent Team on Tuesday, February 3, 2026 8:10 pm | News Categories: Business
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