THERE WERE NO big moves for the pharma sector but some of the announcements made were interesting. Increased government spending on healthcare is bound to have an impact in more ways than one. The reduction in customs duty on life-saving drugs and devices is a welcome move as it will improve affordability.
Retention of the 4 per cent excise duty for some sectors and the abolishment of the fringe benefit tax (FBT) is good news for corporate India. Increased allocation under the National Rural Health Mission (NRHM) is important for continuity. Extension for scope of provisions relating to weighted deduction of 150 per cent on expenditure incurred on in-house research and development (R&D) to all manufacturing businesses (except for a small negative list) is a positive move.
Four years have passed since the patent regime commenced in the country. No moves have been made by the government to encourage innovation or support the pharma industry by announcing any grants for R&D. Incentives to boost research would have created numerous spin-off benefits to help create the much-needed base for pharma innovation in the country.