Finance Minister Nirmala Sitharaman announced the Biopharma Shakti program with an allocation of ₹10,000 crore during Budget 2026-27 presentation. The announcement triggered immediate positive market reaction among pharmaceutical stocks, with Biocon gaining 3% and other pharma stocks rising 1-2%.

Budget Allocation Framework

FM Sitharaman made the announcement during her ninth consecutive Budget speech on February 1 on the floor of the Lok Sabha. The Biopharma Shakti program represents a strategic government initiative to strengthen India's biopharmaceutical capabilities over the next 5 years.

Market Response

The announcement generated immediate positive sentiment in the pharmaceutical sector. Market data shows Biocon shares gained 3% following the Budget announcement, while other pharmaceutical stocks recorded gains of 1-2%, reflecting investor confidence in the government's commitment to the biopharma sector.

Government's Strategic Vision

FM Sitharaman emphasized that biologics are key to longevity and outlined the government's plan to develop India as a biopharma manufacturing hub. The initiative will focus on establishing a biopharma-focused network to enhance the sector's infrastructure and capabilities.

The Biopharma Shakti program forms part of the broader Union Budget 2026-27 framework, demonstrating the government's commitment to positioning India as a global leader in biopharmaceutical manufacturing and innovation. This multi-year funding approach provides industry stakeholders with long-term visibility for planning investments and expansion activities.

Finance Minister Nirmala Sitharaman announced a significant boost to India's infrastructure development in Union Budget 2026-27, increasing infrastructure capital expenditure by 8.9% to ₹12.2 trillion for FY27. This represents a substantial increase from the ₹11.2 trillion allocated in FY26, underlining the government's sustained commitment to building urban and logistics infrastructure across India's growing cities with emphasis on freight corridors, high-speed rail, waterways, ports, and Tier II/III cities.

Infrastructure Investment Growth Trajectory

The Finance Minister highlighted the remarkable growth in public capital expenditure over the past decade, noting that it has "increased manifold, from ₹2 trillion in 2014-15 to an allocation of ₹11.2 trillion in BE 2025-26." The proposed increase seeks to "continue this momentum" through expanded infrastructure financing mechanisms.

Over the past decade, the government has expanded the infrastructure financing ecosystem through new instruments including Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs), and institutions like the National Investment and Infrastructure Fund (NIIF) and NaBFID.

High-Speed Rail Network Expansion

The Finance Minister announced the development of seven high-speed rail corridors as growth connectors to promote sustainable passenger mobility and regional integration:

Focus on Tier II and Tier III Cities

Sitharaman emphasized a decisive shift toward urban growth centers beyond metros, stating: "We shall continue to focus on developing infrastructure in cities with populations of over five lakh—that is, Tier II and Tier III cities—which have expanded to become important growth centres." The Budget introduced the concept of City Economic Regions (CERs), reinforcing cities as growth engines.

Freight Corridors and Waterways Development

The Budget places major emphasis on greening freight movement and easing logistics bottlenecks through several key initiatives. New freight corridors include the east-west corridor connecting Dankuni in West Bengal to Surat in Gujarat, focusing on environmentally sustainable cargo transport.

The ambitious goal is to raise the share of inland waterways and coastal shipping from the current 6% to 12% by 2047, alongside converting rail-based freight to road and water-based logistics over time.

Infrastructure Risk Guarantee Fund

To address long-standing concerns of lenders and developers during infrastructure project construction phases, the Budget proposed establishing an Infrastructure Risk Guarantee Fund. "To strengthen the confidence of private developers regarding risks during infrastructure development and construction phases, I propose to set up an Infrastructure Risk Guarantee Fund," the Finance Minister announced, adding that it would provide prudentially calibrated partial credit guarantees to lenders.