Budget 2021 Expectations: Why Ayurveda sector has high hopes from Modi govt’s Union Budget?

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New Delhi | Updated: January 27, 2021 2:04 PM

Budget 2021 Expectations for Ayurveda: "Budget 2021 is the perfect time for the Central government to focus on Ayurvedic medicine.

Budget 2021 Expectations Predictions AyurvedaBudget 2021 Expectations for Ayurveda: In the past few years, the Central government has actively promoted Ayurveda and supported the growth of pioneering research and medical facilities in the country.

Budget 2021 Expectations for Ayurveda: Covid pandemic has forced everyone to do the reality check of the healthcare set up. Coronavirus has also underlined the importance of a strong and proper healthcare system. As a part of the alternative medicine system, the Ayurveda industry is hoping that Finance Minister Nirmala Sitharaman will make some key announcements in the February 1 Budget 2021 given that the Narendra Modi government has actively promoted Ayurveda in the last few years.

“On behalf of the Association of Herbal and Nutraceutical Manufacturers of India (AHNMI, we expect the government to primarily focus on R&D and innovation in this Budget 2021. The Government of India must establish a cross-ministerial task force under a Joint Secretary at the Ministry of Commerce and Industry that creates a plan and sets a goal to make nutraceutical into a USD 25 billion industry by 2030 and leverage the huge domestic and export potential that the AYUSH, Herbal and Nutraceutical industry offers. The government of India must institutionalise a PPP model to contribute monetarily and non-monetarily towards R&D and innovation needed at all levels of research, technology and manufacturing in AYUSH and Herbal sector,” Sanjaya Mariwala, founder-president of the association and Executive Chairman and Managing Director of OmniActive Health Technologies, said.

“Budget 2021 is the perfect time for the Central government to focus on Ayurvedic medicine as the Covid pandemic has made everyone aware of the importance of natural immunity. It has become imperative that some separate budget is assigned to the manufacture, procurement, and marketing of Ayurvedic Medicine. With an aim to promote new drug discovery in Ayurveda, first-class research facilities are needed to be set up and the government should spend more on research and development in Ayurveda. We are hoping that the Government will provide funds for ayurvedic doctors, practitioners, and scholars to back research and new drug discovery. The government should boost Ayurvedic medicines in line with the Atma Nirbhar Bharat vision of Prime Minister Narendra Modi. In our view, the Goods and Services Tax (GST) should be waived off for products having the license to be sold as Ayurvedic Medicine,” Mr. Abhay Dogra, MD, Mansar Herbals said.

“Corona has made the entire world realize the importance of a strong and proper healthcare system. As a part of the alternative medicine system, we are hoping high from Budget 2021. On the GST front, we hope the government will reduce GST on supplements to a maximum of 6 per cent and GST on Ayurvedic products should be made nil as our country needs a lot of support to develop Ayurveda and alternative medicine systems. The ancient knowledge of Ayurveda needs to be amalgamated with new scientific formulas and techniques available which is not possible without the government’s support. The GST returns should be simplified for the smaller industries whose turnover is less than 5 crore. It should be a maximum of 3 to 4 returns In a year as it is very difficult for us to maintain a finance department dedicatedly for this purpose. The income Tax procedure must be streamlined and simplified. Presently for companies that are filing profits of more than 8 per cent, there is no tax audit but for less than 8 per cent there is a tax audit which is a very cumbersome procedure to maintain. I think this percentage should be brought down to 2 per cent to 2.5 per cent and under 44 AD up to 5 crore. There should not be any tax audit. Compliances by the company must be reduced drastically because they have increased manifold in the last 3 years,” Mr. Kamayani Naresh, Founder, Zyropathy said.

“Sustainability is the biggest issue for us right now as we have direct competition with the world leaders in this field. We need to ensure quality and the cost at the same time, if we do not focus on quality then we tend to lose and will be out of the business. We need government support and the expenditure made in R&D should be nontaxable and given 100 per cent exemptions,” Mr. Kamayani Naresh said.

“In the past few years, the Central government has actively promoted Ayurveda and supported the growth of pioneering research and medical facilities in the country. As the Modi government gears up for the Union Budget 2021, there is a dire need to focus on creating a robust Ayurveda ecosystem, make Ayurveda Atmanirbhar and mainstream it for future generations to accept it as the first call of prevention and treatment. This is the right time for the Union budget to allocate funds to create a robust ecosystem supporting world-class research, product development, and drug discovery in the Ayurvedic sector. A significant price drop in Ayurvedic and immunity-boosting medicines can promote the consumption of natural and ayurvedic products. This is only possible if Goods and Services Tax (GST) should be waived off for ayurvedic medicines and products. We expect the upcoming Union Budget to focus on creating a unique ecosystem for tech-enabled startups who are reinventing and reimagining the ancient wisdom of Ayurveda to make it more acceptable and palatable for millennials,” Mr. Ram N Kumar, Founder, NirogStreet said.

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