Industry Wants Government To Make Pharma Sector Investments More Attractive: Report

Budget 2022 Expectations: As per the Grant Thornton Bharat survey, a majority of those surveyed opined that the government should enhance outlay in the PLI scheme, with a focus on biopharmaceuticals and medical devices.

Updated Date:January 29, 2022 3:08 PM IST

By IANS

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New Delhi: A pre-budget expectations survey showed increasing demand for making investments more attractive in the pharmaceutical industry. As per the Grant Thornton Bharat survey, a majority of those surveyed opined that the government should enhance outlay in the PLI scheme, with a focus on biopharmaceuticals and medical devices.

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"The industry expects that innovation and research & development (R&D) will be the key investment drivers," the survey report said. "Restoration of a higher percentage of deduction under Section 35(2AB) of the Income-tax Act, 1961 will encourage R&D and innovation."

Notably, 85 per cent of the respondents expect restoration of a higher percentage of deduction under Section 35(2AB) of the Income-tax Act, 1961 for R&D expenditure. Besides, 81 per cent expect pharmaceutical products to be included in the 'RoDTEP' scheme.

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"Inclusion of certain pharmaceutical products under the 'Remission of Duties and Taxes on Export Products' (RoDTEP) scheme, amendment of regulations around deductibility of free samples given to doctors and a lower Good and Services Tax (GST) rate on clinical trials and research activities will be a welcome move."

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According to Bhanu Prakash Kalmath S.J., Partner and Sector Leader - Pharma & Healthcare, Grant Thornton Bharat: "India's pharmaceutical industry has played a key role in the global fight against the pandemic."

"Enhanced outlay under the PLI schemes and encouraging exports and research & development will further advance the 'Make in India' vision and consolidate our position as a leading pharmaceutical supplier."

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Published Date:January 29, 2022 3:08 PM IST

Updated Date:January 29, 2022 3:08 PM IST