Biopharma SHAKTI: Stocks in focus after 2026 budget

The Budget announcement included an expenditure of ₹10,000 crore to develop biopharmaceutical manufacturing in India. Over the next five years, the biopharmaceutical focus will be developed in educational institutions through NIPERS (National Institute of Pharmaceutical Education and Research) and even its regulatory arm – CDSCO (Central Drugs Standard Control Organization). The plan also includes the development of more than 1,000 clinical trial sites. As noted in the speech, Indian pharmaceuticals must join the non-communicable disease burden that has overtaken communicable diseases as the reason for deaths in India. Small molecules (chemically synthesized) also give space to biological medicines/biosimilars worldwide.

Business focus

Indian companies are focusing on the production of biologics/biosimilars. Biocon has the largest concentration of biopharmaceutical products in its revenue, with more than 60 percent of revenue in H1FY26 coming from biologics and biosimilars. The other companies have a basket of developed and commercialized biosimilars – Sun Pharma, Dr. Reddy and Zydus Lifesceices. The other leading pharmaceutical companies including Aurobindo and Cipla are in a development mode regarding biosimilars.

The announcement also mentioned an improved approval timeline for biosimilars and a large network of clinical trial sites. These two measures, along with a larger talent pool of professionals, should encourage Indian companies to shift from a portfolio led by small molecules to a portfolio led by biologics/biosimilars.

Published on February 1, 2026