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The pharmaceutical sector has rolled out a robust wish list for the upcoming Budget, with import duty exemptions, simplification of tax procedures, and strengthening of the production-linked incentive (PLI) scheme among major demands.
Commenting on the industry’s expectations, Anil Matai, director general, Organisation of Pharmaceutical Producers of India (OPPI), which represents multinational pharma companies working in India, said that policy-level clarifications, such as expanded exemptions for life-saving drugs and oncology medications from import duty, are vital for reducing treatment costs.
Pharma bodies have also asked for simplified tax laws, with expansion of the scope of Section 115 BAB of the Income Tax Act, which enables new manufacturing entities to opt for a lower corporate tax rate scheme of 15 per cent, to companies solely engaged in pharma research and development (R&D).
“Mandatory timelines for disposing of appeals, particularly by income tax appellate authorities, and removing turnover criteria for safe harbour provisions for R&D will also encourage innovation and investment,” Matai added.
Among other demands is the removal of Section 194R related to marketing samples that would ease business operations.
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Further, the industry has also demanded incentives for AI (artificial intelligence) research in the pharmaceutical sector, building on AI Centres of Excellence, and medical device training from the upcoming Budget.
Commenting on the same, Nikkhil Masurkar, chief executive officer (CEO), Entod Pharmaceuticals, said that increased funding for R&D, particularly in next-generation molecules and AI-driven drug discovery, could drive investment and innovation.
Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance (IPA), which represents the leading drug firms in the country, added that prioritising innovation, ease of doing business, and policies that strengthen the life sciences ecosystem can position India among the top-5 innovators in the world.
“It would be encouraging if the Budget allocates at least 10 per cent of the National Research Fund to life sciences, reinstates 200 per cent weighted deductions for R&D expenditure, and expands the patent box regime to include income from patents abroad,” Jain added.
The industry has also asked for strengthening of the PLI scheme for active pharmaceutical ingredients (APIs) and high-value pharma products.
“This step can reduce import dependency, while better infrastructure support for MSMEs (micro, small, and medium enterprises) can spur innovation and job creation,” Masurkar said.
Among other demands is simplification of Advance Pricing Agreements (APAs), encouraging digital transformation in healthcare through telemedicine and AI-enabled drug delivery systems to ensure faster resolutions, which would also enhance ease of doing business.
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