The pharmaceutical industry in India is looking forward to tax breaks and funding for novel drug research as the government of Prime Minister Narendra Modi gets ready to present the federal finance budget, which is anticipated in July. In his third tenure as prime minister, Modi’s budget will be his first major policy declaration.
The Indian pharmaceutical sector, which is well-known for creating reasonably priced generic medications, is currently being pressured to concentrate on creating sophisticated and cutting-edge medications. According to experts, this shift is essential to preserving India’s standing as the “pharmacy of the world.” Krishna Ella, the chairman of Bharat Biotech, stressed the need of government assistance and suggested that income tax breaks for five to ten years for each novel molecule created in India may promote local innovation and entice businesses to fund state-of-the-art research. One example of the potential for homegrown innovation is Bharat Biotech, which is credited with creating Covaxin, the first COVID-19 vaccine made in India.
India is the third-largest medication maker in the world by volume, behind the US and China, with a pharmaceutical market estimated to be valued at $130 billion by the end of the decade. In spite of this, generic drugs—which are less expensive than name-brand drugs—have received much of the attention. Nonetheless, as the world market develops, Indian pharmaceutical businesses will increasingly need to take chances in the creation of novel medications. Research company Bernstein emphasized that in order for novel pharmaceuticals to be lucrative, India has to create a home market. The company observed that corporations are reluctant to make significant investments in clinical studies since they are expensive and time-consuming if they cannot appropriately price these drugs.
In order to promote innovation, Bernstein also emphasized the need for insurance coverage for innovative medications and the unification of regulatory requirements for clinical trials and production. India has been offering incentives since 2020 in order to encourage the production of a range of goods, such as medications and drones, but it has not yet extended these incentives to producers of innovative drugs. Hetero Drugs’ Chairman, Partha Saradhi Reddy, stated that although the government is evaluating the success of its current programs, the industry is looking forward to laws that would support research and development initiatives.
As per the Pharmaceuticals Export Promotion Council of India (Pharmexcil), the country’s pharmaceutical export sales, which presently have a dominant position in the U.S. generics industry, are anticipated to treble to $55 billion by 2030. The Director General of Pharmexcil, Raja Bhanu, emphasized the need for innovative thinking in order to preserve and improve India’s reputation in the pharmaceutical sector internationally.
To sum up, the pharmaceutical businesses of India are anticipating the federal finance budget to provide them with financial support and tax benefits that will encourage innovation in medication research. Such actions are thought to be essential for the industry to advance beyond its present emphasis on generics and sustain global viability.
SOURCE:
BUSINESS STANDARD
