Budget 2024: As Finance Minister Nirmala Sitharaman will table the Union Budget 2024 later this month, industry leaders from the pharmaceutical sector are demanding renewed focus on the industry.
Mridul Dhanuka, Director, Orchid Pharma told Financial Express.com that with the upcoming budget, they look forward to further empowerment of our sector to further excel on the world stage. “We have proven our capabilities; now we need support to access and compete effectively in the global market,” he Dhanuka said.
“Orchid Pharma’s ground breaking invention, the New Chemical Entity (NCE) antibiotic Cefepime-Enmetazobactam, is a prime example of India’s potential to revolutionize global healthcare. This achievement underscores the immense capabilities of the Indian pharma industry, which is poised to play a larger role in global innovation,” he told Financial Express.com.
He also revealed that they are expecting an increased allocation for healthcare infrastructure and substantial R&D incentives. Enhanced tax benefits, such as a tax credit of up to 200% for R&D expenditure, could significantly boost investment in cutting-edge research and drug discovery, he pointed out.
Additionally, expanding the Production Linked Incentive (PLI) scheme to encompass the broader pharma sector would not only boost domestic manufacturing but also incentivize exports by providing financial assistance for establishing world-class manufacturing facilities.
“To conclude, we feel it is important to expedite regulatory approvals by streamlining processes with global norms. This would allow Indian pharma companies to showcase their innovations globally and contribute more significantly to global health solutions,” he added.
Similarly, V.S. Mani, Executive Director & Global Chief Finance Officer, Glenmark Pharmaceuticals also said that the government’s PLI scheme has begun to yield tangible results in bolstering domestic pharmaceutical production, reducing import dependency, attracting talent and increase in investments in the sector.
“This, along with a focus on enhancing quality through Good Manufacturing Practices and the revised Schedule M, lays a solid foundation for industry growth. The Promotion of Research and Innovation in the Pharma MedTech Sector (PRIP) signifies a strategic move towards augmenting indigenous R&D. Moreover, streamlining regulations through the new Drugs and Cosmetics Bill will further enhance India’s position as a global leader in pharmaceuticals. As we look forward, it is essential to retain skilled workforce and introduce robust initiatives that incentivize top scientific talent,” Mani told Financial Express.com.
Policies encouraging skilled individuals of Indian origin from around the world to return and contribute to the country’s growth will be crucial in nurturing innovation and industry development, he said.
Meanwhile, Nikhil Chopra, CEO & Whole Time Director, JB Pharma said that the pharma industry lauds the government’s continued support towards its growth.
“Looking ahead, the upcoming budget presents an exciting opportunity to solidify this position and push us towards even greater heights. One key area of focus is strengthening the framework for Intellectual Property (IP). A robust IP system will incentivize companies to invest in groundbreaking research and development, leading to the discovery of new life-saving drugs. The government’s commitment to stringent Good Manufacturing Practices (GMP) and quality control measures has been commendable. These efforts ensure the highest quality medicines reach patients around the world,” Chopra told Financial Express.com.
Additionally, the government’s initiatives to tackle the growing challenges of both communicable and non-communicable diseases are highly commendable, he said.
“Building upon this success, the budget could explore initiatives that encourage the development and production of value-added generics. This would not only benefit patients by providing access to more advanced treatments, but also solidify India’s position as a leader in the next generation of pharmaceuticals. With the dynamic transformation at bay, it is essential for the skill force to be updated as well. Government support in skill development is crucial to ensure the industry has a workforce capable of meeting future challenges,” Chopra told Financial Express.com.
He also emphasised on the need to strengthen primary healthcare.
“With the growing focus on preventive healthcare, measures and incentives need to be taken to encourage early diagnosis. Addressing supply chain challenges also remains crucial. Government efforts to bridge these gaps will be necessary to ensure the industry’s continued growth and efficiency,” he added.
Mohan Jain, Director, Naprod Life Sciences said that they are also expecting strategic enhancements that will fortify the Indian pharmaceutical sector. We expect the budget to expand on the current trajectory of innovation, sustainable growth and also incentivising R&D.
“With the introduction of policies aimed at simplifying international market access last year, we now hope to see measures that will help to improve quality standards across the nation. This will only strengthen our domestic capabilities and also amplify our global footprint, driving significant contributions to economic growth and healthcare innovation,” Jain told Financial Express.com.
It is vital that the upcoming budget aligns with the pharma industry’s vision to establish India as a global leader in pharmaceuticals by 2030, he added.
Moreover, Dr. Saloni Wagh, Director, Supriya Lifescience Ltd. told Financial Express.com that she is optimistic about the upcoming Union Budget and its potential positive impact on the healthcare and pharmaceutical sectors.
“We hope to see significant advancements, particularly through increased vaccine coverage for cervical cancer among young girls, a crucial step in preventing a disease that affects many women in India. Additionally, expanding health coverage to ASHA and Anganwadi workers under Ayushman Bharat would acknowledge their invaluable contributions to India’s rural health system. Strengthening maternal and child healthcare programs will improve service delivery and health outcomes for vulnerable populations,” Dr. Wagh told Financial Express.com.
Empowering women remains a top priority, focusing on entrepreneurship and quality of life improvements, she said.
“We urge the government to boost research and development (R&D) and innovation in the pharmaceutical sector and enhance infrastructure. These measures are vital for maintaining India’s competitive edge in global markets and addressing health challenges effectively,” she added.
The government’s commitment to providing over 30 crore Mudra Yojana loans to women entrepreneurs is commendable, Dr. Wagh claimed.
“The upcoming budget presents an opportunity for further progress toward the goal of ‘Viksit Bharat.’ We expect efforts to increase women’s workforce participation through skill development and entrepreneurship, ensuring their essential role in our country’s advancement,” she further added.
Shweta Rai, Managing Director India and Country Division Head South Asia, Bayer Pharmaceuticals highlighted that the Union Budget 2023 gave a thrust to pharmaceutical research and development (R&D) through new programmes and allocation.
“We look forward to government’s continued focus on advancing R&D in the upcoming Union Budget. Health Minister JP Nadda’s strategic emphasis on non-communicable diseases (NCD’s) and expanding Ayushman Bharat coverage to the elderly in his 100-day agenda is a welcome move in the backdrop of rising ageing population and increased incidence of NCDs such as diabetes and chronic kidney disease. We hope that increased budgetary allocations in these areas can help make innovative therapies accessible to people across the country,” Rai told Financial Express.com.
We expect that the focus on women’s health announced in the interim Budget earlier this year is maintained in this Union budget, Rai told Financial Express.com.
“As India progresses towards integrating digital health solutions, we look forward to budgetary measures that strengthen healthcare infrastructure and delivery capabilities. These investments are crucial for enhancing efficiency and accessibility in healthcare services, ultimately ensuring improved health outcomes and quality of life for all citizens,” she said.
