Pharmaceutical Industry receives a budget boost as the FM announces a programme to promote R&D

Finance Minister Nirmala Sitharaman announced on Wednesday a new programme to promote pharmaceutical research and innovation through various centres of excellence. "We will also encourage industry to invest in R&D," she stated. "Dedicated multidisciplinary medical device courses will be supported in existing institutions to ensure the availability of skilled manpower for future futuristic medical technologies, high-end manufacturing, and research," she added. Prior to the Budget, the US pharmaceutical industry stated that India should develop a research and development policy for its pharmaceutical sector.

“It is time that the government of India comes out with a research and development policy for the pharmaceutical sector,” Karun Rishi, president of USA-India Chamber of Commerce (USAIC) told news agency PTI. “In the BioPharma sector, the budget should aim to move up the value chain driven by research and development. Right policy push can provide India the fuel to become the R&D hub of the world,” Rishi said in response to a question.

For national security and stabilising the global supply chain, the budget should incentivise R&D and manufacturing, especially enhancing API (active pharma ingredients) manufacturing in India, he asserted. Farhan Pettiwala, Head of Corporate Affairs, Hikal Limited, said, “Under the provisions of the Union Budget, new programme for research in pharmaceuticals will be formulated that will not only promote R&D investments but also encourage to invest in research would boost pharma sector.

The reduction of basic custom duty on acid grade fluorescence from 5% to 2.5% is a big relief for the pharma industry as it will make the domestic fluorochemicals industry Atma-Nirbhar. Similarly, the exemption of denatured alcohol, is used in chemical industry, will support ethanol blending program and facilitate energy transition. Meanwhile, 10000 Bio resource input centres will truly help India create a national-level Bio resource micro fertilizer and pesticide manufacturing network.”