Pharma Stocks Surge as Budget Unveils ₹10,000 Cr BioPharma Shakti Initiative

Pharmaceutical stocks rallied sharply in early February 2026 trading sessions after Finance Minister announced the BioPharma Shakti initiative in the Union Budget 2026-27, positioning India as a global biopharma manufacturing powerhouse. The flagship programme, with a dedicated outlay of ₹10,000 crore over the next five years, focuses on bolstering domestic production of biologics, biosimilars, and other high-value biopharmaceuticals. Key objectives include accelerating capacity creation, cutting import reliance on critical APIs and biologics, fostering R&D in advanced therapies, and enhancing export competitiveness. The announcement triggered strong buying interest across the sector: Nifty Pharma Index climbed notably in the post-Budget session.

aceutical Industries jumped up to 3.8%. n advanced around 2.9%. Several mid-cap and small-cap biotech names also saw gains of 2–5%, reflecting optimism around potential order inflows, PLI-like incentives, and faster approvals for indigenous biopharma projects.