The Indian pharmaceutical industry aspires to reach the milestones of US$130 billion by 2030 and US$450 billion by 2047 as part of the India@100 vision. Innovation, affordable access to healthcare, upgradation of infrastructure remain the key priorities for the industry to achieve the aspirations.
The above priorities require robust support for the pharmaceutical and medical devices sector from the Government in the form of incentives, revisiting regulations, and implementing measures to ensure exceptional performance. In the upcoming interim budget, from a tax perspective, some of the key expectations for the industry have been outlined below:
Income-tax Act:
· R&D incentives: While the research scheme of the Government is a welcome step, the tax breaks and other support mechanisms to stimulate domestic drug development and medical devices and attract foreign investment would further support advanced research.
· Boosting local manufacturing: Extension of sun set date for commencement of new manufacturing facilities to avail reduced corporate tax rate. Also focus on contract research incentives as they can further enable manufacturing in India.
· Promoting ease of doing business by simplifying compliances and providing certainty
A comprehensive approach is crucial for navigating the challenges and seizing the opportunities that lie ahead in achieving the envisioned milestones. These are broad asks to stimulate the industry and hope the budget finds some of them.
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