Relevance: GS II (Health) & GS III (Biotechnology) | Source: Union Budget 2026-27
1. The Big Shift: From “Volume” to “Value”
The Budget signals a major pivot for India’s pharmaceutical sector. We are moving from being the “Factory of Generics” (cheap, simple drugs) to a “Global Innovation Hub” for complex medicines.
- New Scheme: Biopharma SHAKTI launched with ₹10,000 Crore (5 years).
- The Goal: To produce Biologics and Biosimilars domestically.
- Concept: Generics are simple chemical copies (like Aspirin). Biologics are complex medicines made from living organisms (like vaccines or cancer therapies). They are harder to make but offer higher value.
- Infrastructure: Three new NIPERs (National Institutes of Pharmaceutical Education and Research) and 1,000 new clinical trial sites will be set up.
2. Relief for Patients (Cancer & Rare Diseases)
To help common people, the government has removed the Basic Customs Duty on:
- 17 Cancer-related drugs.
- Medicines/food for 7 Rare Diseases.
- Impact: This directly lowers the Out-of-Pocket Expenditure (OOPE) for families battling life-threatening diseases.
3. The “Care Economy” (Silver Economy)
Recognizing that India is aging, the budget focuses on Geriatric (Elderly) Care.
- Skilling: A target to train 1.5 lakh multi-skilled caregivers who can combine medical care with wellness (Yoga) and assistive device operation.
- Mental Health: Two new National Institutes proposed in Ranchi and Tezpur to fix the infrastructure gap.
UPSC Value Box
| Concept / Term | Relevance for Prelims |
| Biosimilars | A biologic medical product that is highly similar to an already approved biological medicine (the “reference product”). It is to Biologics what a “Generic” is to chemical drugs, but much harder to copy. |
| Biopharma SHAKTI | Scheme for Harnessing Advanced Knowledge and Technology for Innovation. It targets the high-value biological drug market. |
| Silver Economy | The system of production, distribution, and consumption of goods and services aimed at using the purchasing potential of older and ageing people. |
UPSC Prelims Practice Question
Q. With reference to the pharmaceutical sector, consider the following statements:
- Generics are drugs produced through chemical synthesis and are identical copies of the original branded drug.
- Biologics are complex medicines manufactured from living systems such as microorganisms or plant cells.
- The Biopharma SHAKTI scheme aims to promote the domestic manufacturing of chemical fertilizers to support the Ayush mission.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Correct Answer: (b)
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