The pharmaceutical industry has requested fiscal incentives to boost research and development (R&D) as it anticipates reaching a market size of USD 400–450 billion by 2047.
Sudarshan Jain, the Secretary General of the Indian Pharmaceutical Alliance, emphasised the high-risk nature, long gestation period, and low success rate of research, underscoring the need for continuous investments. Jain called for the budget for 2024–25 to introduce policies that offer benefits in terms of both direct and indirect taxes, along with facilitating a business-friendly environment for pharmaceutical companies.
"The budget 2024-25 should outline conducive policies that provide benefits in terms of both direct and indirect taxes and also facilitate ease of doing business for pharma companies," Jain said.
The Indian pharmaceutical sector aims to achieve USD 120-130 billion by 2030 and USD 400-450 billion by 2047. To realise this vision, the industry seeks accelerated innovation and R&D. The Promotion of Research and Innovation Programme (PRIP) Scheme, announced in 2023, was acknowledged as a positive step to stimulate innovation.
The healthcare industry, represented by NATHEALTH, advocates for an increase in healthcare spending to 2.5 per cent of GDP and the rationalization of the GST framework. NATHEALTH also aims to enhance the medical value travel segment, address the MAT credit issue, and strengthen the healthcare value chain to drive economic growth and create job opportunities.
Key focuses include building local capabilities for healthcare services in remote regions, localising the healthcare value chain, unveiling a roadmap for long-term infrastructure financing, increasing medical and nursing colleges, and fiscal reforms in the health insurance sector in the interim Union Budget 2024–25.
Metropolis Healthcare seeks a zero percent GST on diagnostic services and refunds for GST paid on inputs. Given that 60% of India's diagnostics depend on imports, rationalising import tariffs on healthcare products is deemed essential.
Roche Diagnostics India emphasised the importance of prioritising access to affordable and accurate diagnostics, believing it can transform India's healthcare system.
(With PTI inputs)
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