The Indian pharmaceutical industry wants financial incentives to boost R&D. The sector has demanded GST reduction, more healthcare spending, and business-friendly conditions.
Pharmaceutical companies predict a $400–450 billion market by 2047 and want budgetary incentives for R&D.
Indian Pharmaceutical Alliance Secretary General Sudarshan Jain underlined the need for continued funding due to research’s high risk, long gestation, and low success rate. Jain recommended direct and indirect tax benefits and pharmaceutical company-friendly rules in the 2024–25 budget.
“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,” said Jain.
The Indian pharmaceutical sector wants $120-130 billion by 2030 and $400-450 billion by 2047. The industry wants speedier innovation and R&D to achieve this. The 2023 PRIP Scheme was praised for promoting innovation.
Healthcare business group NATHEALTH favors 2.5% GDP healthcare spending and GST rationalization. To increase economic growth and employment creation, NATHEALTH intends to improve medical value travel, correct MAT credit, and build the healthcare value chain.
The interim Union Budget 2024–25 emphasizes remote healthcare capabilities, localizing the healthcare value chain, long-term infrastructure finance, medical and nursing college expansion, and health insurance budget reforms.
Metropolis Healthcare wants GST-free diagnostics and input GST refunds. India imports 60% of its diagnostics, hence healthcare import duties must be reduced.
Roche Diagnostics India underlined the need for affordable, precise diagnostics to modernize India’s healthcare system.
Conclusion
To reach a USD 400-450 billion market by 2047, the Indian pharmaceutical industry requires fiscal incentives for R&D. The sector wants 120-130 billion by 2030 and 400-450 billion by 2047. PRIP Scheme was announced in 2023 to promote innovation. Healthcare group NATHEALTH favors GST rationalization and 2.5% GDP healthcare spending. Metropolis Healthcare wants GST-free diagnostics and input GST refunds.
