Pharma stocks rally as Budget 2026 rolls out ₹10,000 crore Biopharma Shakti plan

New Delhi: Indian pharmaceutical stocks rallied sharply on Saturday after Finance Minister Nirmala Sitharaman announced a major policy push to position India as a global biopharmaceutical manufacturing hub in the Union Budget 2026-27.

The Centre unveiled the ‘Biopharma Shakti’ initiative, committing an outlay of ₹10,000 crore over the next five years to strengthen domestic capabilities in biologics and biosimilars.

The announcement triggered broad-based buying across pharma counters, with investors betting that sustained government support for high-value drug manufacturing will unlock a new phase of growth for the sector.

At around 11.15 am, Biocon emerged as the top gainer, rising about 2.5 percent to trade near ₹375.90 per share. Shares of Piramal Pharma, Sun Pharma, and Torrent Pharma also traded firmly in the green, reflecting optimism around the policy announcement.

Presenting the Budget in Parliament, Sitharaman said the Biopharma Shakti programme would focus on building a biopharma-centric innovation and manufacturing ecosystem in the country. The initiative aims to reduce India’s dependence on imported biologic drugs and key inputs, while enhancing competitiveness in complex, high-margin segments of the global pharmaceutical market.

“India’s disease profile is rapidly changing, with a growing burden of non-communicable diseases such as diabetes, cancer and autoimmune disorders,” Sitharaman said, underlining the need to expand domestic capacity for advanced biologic medicines. She noted that biologics play a critical role in improving longevity and managing chronic illnesses, making them central to India’s long-term healthcare and life sciences strategy.

According to Budget documents, the ₹10,000 crore allocation will be spread over five years and used to support capacity creation, research and development, and technology upgrades across the biopharma value chain.

The programme also envisions closer collaboration between industry, academia and research institutions to accelerate innovation and commercialisation of biologics and biosimilars.

Market participants welcomed the announcement, noting that it comes at a time when global demand for biologics is expanding rapidly, driven by ageing populations and rising incidence of lifestyle-related diseases.

Analysts said companies with exposure to complex generics, biosimilars and contract development and manufacturing (CDMO) services stand to benefit the most from the policy push.

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“The government’s clear intent to back biologics manufacturing provides long-term visibility for investments in this space,” said a Mumbai-based pharma analyst. “India already has strengths in chemistry and process engineering. With targeted fiscal support, the sector can move up the value chain and capture a larger share of the global biologics market.”

The Biopharma Shakti initiative is also expected to complement existing production-linked incentive (PLI) schemes and broader efforts to strengthen India’s healthcare infrastructure. Industry executives believe the programme could help Indian firms scale up faster, lower costs through localisation, and improve access to advanced therapies for domestic patients.

While near-term stock movements reflected immediate optimism, analysts cautioned that execution will be key. Timely rollout of incentives, regulatory clarity, and support for clinical research and quality compliance will determine how effectively the programme translates into sustained growth.

Still, Saturday’s rally underscored investor confidence that Budget 2026 marks a decisive step in India’s ambition to become a global biopharma powerhouse.