Pharma sector got overlooked in the recently announced interim budget though there were some radical announcements for other sectors. The industry continues to await its due. Express Pharma garners a few reactions to the interim budget and looks at Modi government’s significant offerings for the sector in the last five years
Modi Govt’s Major offerings for pharma Sector
- Make in India scheme brought in changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry in different sectors, including pharmaceuticals
- Raised FDI cap for brownfield pharma investments to 74 % and above 74 % with government approval. FDI cap for greenfield pharma investments raised to 100 %
- Introduction of GST increased manufacturing cost of Indian pharma industries but eliminated the cascading effect of multiple taxes
- Thrust on pharma education with three new NIPERs to be set up in Maharashtra, Rajasthan and Chattisgarh and one institute of Science and Education Research in Nagaland and Odisha each.
- Encouragement to eco-friendly practices by exempting common affluent treatment plant from service-tax
- Planned to set up 3,000 stores under Prime Minister’s Jan Aushadhi Yojana to improve accessibility and affordability to medicines
- Tried to revive growth in the MSME sector with a `3,794 crores allocation in the form of capital support and interest subsidy