Budget underscores R&D in pharma
Govt has identified genomics and pharmaceuticals as ‘sunrise’ sectors, which will go a long way in attracting increased investments in biopharmaceutical innovation
image for illustrative purpose
The Union Budget for the financial year 2022-23, presented by Finance Minister Nirmala Sitharaman on February 1, will spur research and development (R&D) in the pharmaceutical sector in the country as the minister has announced a slew of supportive measures for R&D in the budget.
In her Budget speech, the Finance Minister has underscored the importance of the pharmaceutical and healthcare industry, especially vaccination coverage and improved healthcare systems. In the budget, genomics and pharmaceuticals have duly been noted as sectors contributing to sustainable development, suggesting supportive government policies in future, including for R&D and blended finance for this sector.
That the government is seized of the importance of pharma sector is evident from the fact that in the Union Budget 2022, the government has identified genomics and pharmaceuticals as 'sunrise' sectors. This would enable all round development beyond employment and access to enhanced industry efficiencies and competitiveness, which will go a long way in attracting increased investments in biopharmaceutical innovation.
"We understand that the budget has proposals for the promotion of R&D in pharma, and that ease of doing business and supportive policy will be provided. This is a welcome step. In recent years Indian scientists and pharma business have demonstrated their capabilities in research, particularly in vaccines. A lot more can be achieved in the pharma R&D space. We await detailed proposals," said Dr Viranchi Shah, national president of Indian Drug Manufacturers' Association (IDMA), an association of around 700 small and medium drug manufacturers spread across the country.
Echoing the same opinion, Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA) - an association of around 15 big Indian pharma companies, said: "This is India's first post vaccination budget and the policy consistency is maintained. There is a thrust on macro areas like digital, VC-ecosystem, ease of doing business and supportive measures for R&D and industry-academia collaboration with pharma included in the sunrise sectors".
Meanwhile, though there is a feeling that more support could have been offered to the industry in terms of finance and credit flow, experts in the pharma and healthcare sectors have more or less welcomed the Finance Minister's proposal to roll out National Digital Health Ecosystem, PLI schemes and extend Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023 to help MSMEs mitigate adverse impact of Covid-19.
"The extension of ECLGS for a year is a welcome move. It will provide much needed additional credit to MSMEs. Extending a concessional corporate tax rate of 15 per cent for one more year till March 2024 for newly incorporated manufacturing companies is also a welcome step. We also hail the government's proposal to allow taxpayers to file an updated return on payment of additional tax within two years from the end of the relevant assessment year. It will help MSMEs," said Dr Rajesh Gupta, president, Himachal Pradesh Drug Manufacturers Association (HDMA). Experts have also welcomed the proposal to launch a 'National Tele Mental Health Programme' to further strengthen mental health services and the proposal to roll out National Digital Health Ecosystem, envisaged by the Ayushman Bharat Digital Mission (ABDM).
"The speedy roll-out of the digital health mission, move towards provision of unique health identity, upgradation of two lakh angadwadis, alignment of national skill framework with industry needs and value-based procurement augurs well for modernization of healthcare in the post-pandemic era. The launch of the tele-mental program has brought mental health issues to the forefront which will better the access to quality mental health counselling. Focus on promoting R& D in the field of Artificial Intelligence, Genome sequencing and Pharma is a much-needed demand being fulfilled," commented Dr Harsh Mahajan, president, NATHEALTH, which represents the healthcare providers in the country.
(The author is freelance
journalist with varied experience
in different fields)
