Biocon, Sun Pharma lead gains after FM announces ₹10,000-crore biopharma outlay
- 1st February 2026
- 05:00 PM
- 2 min read
PL Capital
Summary
Pharma stocks rallied after Budget 2026 announced a ₹10,000-crore push for biologics and biosimilars under the Biopharma SHAKTI initiative.Mumbai | February 1, 2026
What is Biopharma SHAKTI
The Union Budget 2026–27 unveiled Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation), a strategic mission aimed at positioning India as a global hub for biopharmaceutical manufacturing. The initiative carries a ₹10,000 crore outlay over five years and focuses on strengthening domestic capabilities in biologics and biosimilars.
Why the government is pushing biologics
The mission is designed to address India’s shifting disease profile, with non-communicable diseases such as diabetes, cancer and autoimmune disorders now accounting for a majority of the country’s healthcare burden. By expanding domestic production of complex biologic medicines, the government aims to improve affordability, access and long-term healthcare outcomes.
Institutional and clinical capacity expansion
Key elements of Biopharma SHAKTI include the establishment of three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing NIPERs to create a specialised biopharma-focused academic and research network. The programme also proposes the development of more than 1,000 accredited clinical trial sites across the country to accelerate drug development.
On the regulatory front, the Central Drugs Standard Control Organisation will be strengthened through the creation of a dedicated scientific review cadre to align approval processes with global standards and reduce timelines.
Pharma stocks rally on Budget announcement
Markets reacted positively to the announcement, with pharma stocks gaining during the Budget session as investors bet on companies with strong R&D, biologics and manufacturing capabilities emerging as key beneficiaries of sustained policy and regulatory support. Biocon led the rally, rising as much as 3% to around ₹375.90, reflecting its high exposure to biologics and biosimilars. Piramal Pharma advanced about 1.3% to ₹156.6, while shares of Sun Pharma, Dr. Reddy’s Laboratories and Torrent Pharma gained between 1% and 2%.
Biopharma SHAKTI is among the seven strategic and frontier sectors identified in the Budget to support sustained economic growth.
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