Biocon, Sun Pharma and Other Pharma Stocks in Focus as FM Announces ₹10,000 Crore ‘Biopharma Shakti’ in Budget 2026

Pharmaceutical stocks traded higher after the Union Budget 2026 outlined government spending aimed at expanding India’s biopharmaceutical manufacturing capacity. The Budget proposed an allocation of ₹10,000 crore over 5 years for the production of biologics and biosimilars. 

The announcement was made by Nirmala Sitharaman while presenting the Budget in Parliament. She said the policy focus reflects changes in India’s disease pattern, with a higher incidence of non-communicable illnesses such as cancer, diabetes and autoimmune disorders. 

What Biopharma Shakti Covers 

The programme, named Biopharma Shakti, is intended to support domestic manufacturing of biologic medicines and biosimilars. According to Budget documents, the plan is to build capacity in segments that involve complex processes and higher development costs. 

The scheme is part of a plan to scale up manufacturing across seven strategic and frontier sectors identified by the government. These sectors have been outlined as priorities to support long-term growth and reduce dependence on imports. 

Stock Market Response 

Pharma stocks moved up following the Budget announcement. Biocon rose 2.5% to ₹375.90 by 11.15 am. Shares of Piramal Pharma, Sun Pharma and Torrent Pharma were also trading higher during the session. 

Education and Research Plans 

The Budget outlined plans to expand training and research infrastructure linked to the biopharma sector. This includes the establishment of three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing institutes. 

These institutes are expected to focus on advanced research, skill development and coordination with industry. 

Clinical Trial Network  

The government also proposed setting up a network of 1,000 accredited clinical trial sites across India. The stated objective is to improve trial capacity, align regulatory practices, and support drug development timelines. 

Read More: Sun Pharma Responds to Reports on Potential Organon Acquisition! 

Conclusion  

The biopharma measures are part of a health strategy linked to knowledge, technology and innovation, showcasing a policy shift towards higher-value pharmaceutical manufacturing. 

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