Biopharma SHAKTI and Health Sector Reforms

  • 02 Feb 2026

In News:

The Union Budget 2026–27 places health at the centre of India’s development strategy, aligning with the broader goals of capacity building, inclusive growth, and economic resilience. A key announcement is Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation), alongside major reforms in medical education, geriatric care, AYUSH, mental health, and emergency services.

Biopharma SHAKTI: Towards a Global Biopharma Hub

Biopharma SHAKTI aims to position India as a global manufacturing hub for biologics and biosimilars, with an outlay of ?10,000 crore over five years.

Key Components:

  • Development of a biopharma innovation and manufacturing ecosystem
  • Establishment of 3 new National Institutes of Pharmaceutical Education and Research (NIPERs) and upgrading 7 existing ones
  • Creation of 1,000+ accredited clinical trial sites across India
  • Promotion of advanced biomanufacturing infrastructure and R&D

The initiative responds to India’s rising burden of non-communicable diseases (NCDs) such as cancer, diabetes, and autoimmune disorders, which require advanced biologic therapies.

  • Biologics are complex medicines derived from living organisms, often expensive and technologically demanding to produce.
  • Biosimilars are highly similar, cost-effective alternatives that expand access to life-saving treatments while maintaining safety and efficacy.

Strengthening the Health Workforce

To create skilled employment pathways:

  • Allied Health Professional (AHP) institutions will be upgraded
  • 100,000 new AHPs will be added over five years in fields such as optometry, radiology, anaesthesia technology, OT technology, applied psychology, and behavioural health

Additionally, a national care ecosystem will be built for geriatric and allied care services.

  • 1.5 lakh caregivers will be trained through NSQF-aligned programmes
  • Training will include wellness, yoga, and operation of assistive devices

This addresses India’s ageing population and growing demand for long-term and home-based care.

Regional Medical Hubs and Medical Tourism

A new scheme will support states in establishing five Regional Medical Hubs through public-private partnerships. These integrated complexes will include:

  • Advanced medical facilities
  • Educational and research institutions
  • AYUSH centres
  • Medical value tourism facilitation services
  • Diagnostics, rehabilitation, and post-care infrastructure

This aims to boost medical tourism, generate employment, and improve regional healthcare access.

Boost to AYUSH and Traditional Medicine

Recognising global interest in traditional systems:

  • 3 new All India Institutes of Ayurveda will be established
  • AYUSH pharmacies and drug testing laboratories will be upgraded
  • The WHO Global Traditional Medicine Centre, Jamnagar will be strengthened for evidence-based research and training

Mental Health and Emergency Care Expansion

To bridge regional gaps:

  • National Mental Health Institutes in Ranchi and Tezpur will be upgraded as Regional Apex Institutions
  • Emergency capacity of district hospitals will be increased by 50% through new Emergency and Trauma Care Centres

These measures strengthen India’s preparedness for both routine and crisis healthcare needs.