new delhi, Jan. 16 -- The government is likely to announce new drug testing laboratories and an increase in regulatory manpower in the upcoming Union Budget, according to three government officials aware of the deliberations. Amid increased global scrutiny on India's pharmaceutical exports, the move to revamp an existing scheme on drug regulation aims to tighten oversight of a $60-billion industry that supplies nearly a fifth of world's generic drugs. The Centre has received numerous representations from state governments and Union territories, underscoring the urgent need for a more robust drug regulatory system, the officials said. The union health and family welfare ministry is finalizing a comprehensive plan to upgrade existing infrastructure and expand the technical workforce. Persistent quality issues risk significant economic losses and increased international regulatory barriers in the backdrop of a series of failures denting India's image as the "pharmacy of the world." In FY25, a total of 116,323 drug samples were tested by regulators. Of these, 3,104 were found 'not of standard quality', while 245 samples were found spurious and adulterated. Currently, seven central drug testing laboratories operate in Kolkata, Chennai, Mumbai, Chandigarh, Hyderabad, Guwahati, and Kasauli. India has 2,283 drug inspectors, including 400 working for apex drug regulator, the Central Drugs Standard Control Organisation. India now has 249 drug inspector posts vacant, the government had said in parliament on December 16. The Centre currently runs a Strengthening of States' Drug Regulatory System with a Rs.850-crore allocation for upgrading laboratories, setting up new testing facilities and modernising drug control offices. The scheme operates on a cost-sharing basis; wherein the Centre and states bear the cost in a 60:40 ratio. The new proposal, likely to be announced in the budget for FY27 on February 1, involves extending the scheme for five years till FY31 as Version 2.0....