₹13,000 Crore Bio-Pharma SHAKTI and Chemical Parks Announced

Union Minister for Chemicals and Fertilisers J. P. Nadda highlighted the government’s strategic push towards strengthening India’s bio-pharmaceutical and chemical sectors through major budgetary provisions. Addressing a post-Budget webinar on “Sustaining and Strengthening Economic Growth”, he emphasised that the ₹13,000 crore allocation for Bio-Pharma SHAKTI and the establishment of three dedicated chemical parks reflects a long-term investment in India’s industrial and healthcare future. The initiative aligns with the broader vision of Viksit Bharat and aims to enhance India’s global competitiveness in high-value pharmaceutical and chemical manufacturing.

Shift Towards Biologics and Biosimilars

The minister noted that India has already established itself as the “pharmacy of the world” through large-scale production of affordable generic medicines. However, the global pharmaceutical landscape is rapidly shifting towards biologics. By 2035, nearly 40 percent of medicines worldwide are expected to be biologics. Additionally, patents worth around 300 billion dollars are set to expire by 2030, creating major opportunities in the biosimilars market. To capitalise on this transition, the government has launched the BioPharma Mission with a budget of ₹10,000 crore to be utilised over the next five years.

Expanding Research Infrastructure

To strengthen India’s research ecosystem, the government plans to establish around 1,000 clinical trial sites across the country. This expansion will significantly improve the country’s capacity for drug development, innovation, and regulatory research. The minister also emphasised the importance of strengthening institutions such as the National Institute of Pharmaceutical Education and Research (NIPER) by integrating them more closely with talent development and skill training programmes.

Strengthening Regulatory and Industrial Ecosystems

The Central Drugs Standard Control Organisation (CDSCO) will be reinforced to accelerate regulatory approvals and support emerging areas such as biosimilars and fermentation-based drug production. These reforms aim to ensure faster approvals, encourage innovation, and attract greater investment into India’s pharmaceutical research sector.

Important Facts for Exams

• Biosimilars are biologic medical products highly similar to already approved biologic medicines.
• India is known as the “pharmacy of the world” due to its large-scale production of affordable generic medicines.
• NIPER is a network of national institutes focused on pharmaceutical education and research.
• CDSCO functions as India’s national regulatory authority for pharmaceuticals and medical devices.

Dedicated Chemical Parks to Boost Manufacturing

The government has allocated ₹3,300 crore to develop three world-class chemical parks equipped with plug-and-play infrastructure, advanced effluent treatment systems, integrated logistics, and built-in safety mechanisms. India’s chemical sector currently produces output worth about ₹19.4 lakh crore but accounts for only around 3 percent of the global market. The new chemical parks aim to reduce production costs by 20–40 percent through industrial symbiosis and promote a circular economy model. The government’s long-term target is to raise India’s global share in the chemical sector to 5–6 percent by 2030 and achieve a turnover of 1 trillion dollars by 2040.