Pharma industry seeks incentives for R&D
Should outline conducive policies that provide benefits in terms of both direct and indirect taxes and also facilitate ease of doing business, says Sudarshan Jain, General Secretary, IPA
New Delhi: The pharma industry has sought fiscal incentives to promote research and development (R&D) in the sector, as it is likely to reach $400-450 billion market size by 2047. In a statement, Indian Pharmaceutical Alliance Secretary General Sudarshan Jain said there is a high risk, long gestation period and low success rate in research, and therefore, there is a need for continuous investments. "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 the pharma companies," Jain noted.
The interim Budget is scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1. Jain said the domestic pharma industry is at the cusp of change. "The Indian pharma sector aims to achieve $120-130 billion by 2030 and $400-450 billion by 2047. To achieve this vision, the Union Budget 2024-25 should accelerate the pace of innovation and R&D," he added.
The announcement of the Promotion of Research & Innovation Program (PRIP) Scheme in 2023 was a positive step to spur innovation, he stated. Healthcare industry body Nathealth said it is advocating for an increase in healthcare spending to 2.5 per cent of GDP and the rationalisation of the GST framework. "Additionally, we aim to enhance the medical value travel segment by addressing the MAT credit issue and strengthening the healthcare value chain, which is essential for driving economic growth and creating new job opportunities," Nathealth MD and CEO Ashutosh Raghuvanshi said.
