Budget 2024 Expectations: Finance Minister Nirmala Sitharaman will announce Union Budget 2024-25 on July 23. Ahead of the Union Budget 2024-25, industry leaders of the healthcare sector emphasise on the need to enhance quality healthcare in India.
“We commend the government’s efforts to enhance quality healthcare in India and are optimistic about the continued reforms and policies aimed at bolstering innovation and streamlining regulatory processes. We at OPPI look forward to the upcoming Union budget and are hopeful that it will have a positive impact on the healthcare and pharma sector. To accelerate R&D and innovation, we urge the government to explore methods to incentivize R&D investments, such as deductions on R&D expenses, research-linked incentives for MNCs, and corporate tax concessions,” Anil Matai, Director General, Organisation of Pharmaceutical Producers of India (OPPI) said.
Matai also said that recognizing the high-risk, long-gestation nature of R&D, we suggest extending the scope of section 115BAB of the Income Tax Act, 1961 to companies solely engaged in pharmaceutical research and development and providing a 200% deduction rate on R&D expenditures.
“This would significantly boost our ability to undertake essential research and development, including clinical trials and patent registration. Furthermore, establishing an effective intellectual property rights regime is critical for driving growth and encouraging research based pharma companies, both global & Indian to introduce innovative therapies in India towards addressing unmet medical needs. We recommend introducing incentives for centers and companies that provide specialized training programs for pharmaceutical employees, promoting growth and supporting continuous professional development in the sector,” he told Financial Express.com.
Incentives for developing treatments for rare diseases are also crucial. Besides, enhancing the management of rare diseases through more CoEs, increased budget allocations for incentivising R&D on therapies for rare disease, and import duty waivers are is essential, he said.
Expanding the list of life-saving drugs eligible for GST/import duty exemptions, including all oncology medications, will further improve patient affordability. Lastly, to attract investment and contribute to a more resilient and future-ready pharmaceutical industry under Atma Nirbhar Bharat, the government should provide incentives for investments in bonds issued by pharmaceutical companies, he added.
“We look forward to the government’s continued support and strategic initiatives to foster a robust and innovative pharmaceutical sector in India. We are confident that these measures will accelerate R&D and innovation, ultimately leading to a healthier, more resilient, and self-reliant India,” Matai told Financial Express.com.
Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance highlighted that Indian pharmaceutical industry has been instrumental in shaping global health outcomes by providing affordable, quality medicines.
“The industry is now at a pivotal moment, with an aspiration to grow to USD 120 billion by 2030. The policy direction should leverage the industry’s knowledge-driven foundation and its status as a global manufacturing hub. The thrust should be on Quality and Innovation. Given the high risk, lengthy development periods, and low success rates in research, continuous investment is crucial,” Jain told Financial Express.com.
The 2024-25 budget should introduce policies that provide direct and indirect tax benefits to encourage research and investment in becoming global benchmark in quality, he added.
