The Budget announcement included a ₹10,000 crore outlay to develop biopharmaceutical production in India. Over the next five years biopharmaceutical focus is to be developed in educational institutions through NIPERS (National Institute of Pharmaceutical Education and Research) and even regulatory arm – CDSCO (Central Drugs Standard Control Organisation). The plan also includes developing over 1,000 clinical trial sites. As the speech noted Indian pharmaceuticals need to align with the noncommunicable disease burden which has overtaken communicable diseases as the reason for deaths in India. Globally as well, small molecules (chemically synthesized) are ceding space to biologics/biosimilars.

Company focus

Indian companies have been focusing on biologics/biosimilar production. Biocon has the largest concentration of biopharmaceutical products in its revenues with more than 60 per cent of H1FY26 revenues 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 pharma companies, including Aurobindo and Cipla are in a development mode with respect to biosimilars.

The announcement also mentioned an improved approval timeframe for biosimilars and large network of clinical testing sites. These two measures along with a larger talent pool of professionals should drive Indian companies shift from a small molecule led portfolio to a biologics/biosimilar led portfolio.

Published on February 1, 2026