All Bluster And No Lustre?

With little or no financial incentives in Union Budget 2017, the pharmaceutical industry remains deprived of a cure for its ailments.

‘The budget has not specifically addressed imminent challenges directly affecting the sector’

UTKARSH PALNITKAR

NATIONAL HEAD – LIFE SCIENCES PRACTICE, KPMG INDIA

The life sciences sector had great expectations from the Budget not only from a fiscal incentives perspective but also from a regulatory angle; more so, given the government’s vision of making India one of the top-three pharma markets by 2020.

However, this year, too, no specific impetus was given to the sector. While the move to eradicate certain diseases; the proposal to set up two new AIIMS; additional post-graduate medical seats; proposed amendments in the Drugs and Cosmetics Rules; and new rules for medical devices are welcome, the Budget has not specifically addressed imminent challenges directly affecting the sector.

In order to stay competitive in the overseas market and given the uncertain global climate, it was expected that specific impetus or incentives would be given to innovation in the form of weighted deduction on R&D, incentives for patents, exemptions of certain duties and taxes, etc.

These demands remained largely unaddressed, giving no specific reason to cheer for the sector as a whole in 2017–18.

‘The budget provides the necessary impetus to sustain GDP growth at over seven per cent’

GLENN SALDANHA

CHAIRMAN AND MD, GLENMARK PHARMA