New Delhi, January 28, 2022: In line with the Aatmanirbhar Bharat initiative, the Union Budget should lay a framework to make India the pharmacy of the world with focus on self-sufficiency. Since this can be best achieved by building on the manufacturing and research capabilities of the Indian pharmaceutical industry, the government should go about it by announcing incentives and grants for cost-intensive research, particularly in critical care segments like antimicrobial resistance.
All the material procured by pharma firms for R&D purposes should be exempted from customs duty and GST. While as per existing DSIR notifications, there is already provision for partial waivers and/or reduction of custom duty and GST on import of certain items, a complete waiver would further help in setting up a world-class R&D infrastructure.The government should enable our R&D-driven pharma companies to compete with top global innovators and secure a significant market share by offering interest subsidies and lower GST on clinical trials and research activities, giving tax concessions to exporters and restoring weighted tax deduction under Section 35(2AB).
The Finance Minister should also earmark funds to strengthen the pharma supply chain and distribution infrastructure and integrate it with latest digital technologies. This will not only ensure improved access and uninterrupted deliveries in real time, but will also lead to cost reduction and quality improvement, thus making Indian pharma companies far more competitive.
Corporate Comm India (CCI Newswire)
