In anticipation of the upcoming Union budget, the Organisation of Pharmaceutical Producers of India (OPPI) has voiced its expectations and recommendations for the healthcare and pharma sector. Anil Matai, Director General of OPPI, expressed optimism about the government’s ongoing efforts to enhance quality healthcare and the continuous reforms aimed at bolstering innovation and streamlining regulatory processes.
“We commend the government’s efforts to enhance quality healthcare in India and are optimistic about the continued reforms and policies aimed at bolstering innovation and streamlining regulatory processes. We at OPPI look forward to the upcoming Union budget and are hopeful that it will have a positive impact on the healthcare and pharma sector,” Matai stated.
To accelerate research and development (R&D) and innovation, OPPI urges the government to explore methods to incentivise R&D investments. These suggestions include deductions on R&D expenses, research-linked incentives for multinational corporations, and corporate tax concessions.
Recognising the high-risk, long-gestation nature of R&D, Matai proposed extending the scope of section 115BAB of the Income Tax Act, 1961, to companies solely engaged in pharmaceutical research and development, and providing a 200 per cent deduction rate on R&D expenditures. “This would significantly boost our ability to undertake essential research and development, including clinical trials and patent registration,” he added.
Matai also emphasised the importance of establishing an effective intellectual property rights regime to drive growth and encourage research-based pharmaceutical companies, both global and Indian, to introduce innovative therapies in India. He recommended introducing incentives for centres and companies that provide specialised training programs for pharmaceutical employees, promoting growth, and supporting continuous professional development in the sector.
Incentives for developing treatments for rare diseases are also deemed crucial by OPPI. Matai highlighted the need for more Centers of Excellence (CoEs), increased budget allocations for incentivising R&D on therapies for rare diseases, and import duty waivers. Expanding the list of life-saving drugs eligible for GST/import duty exemptions, including all oncology medications, is another recommendation aimed at improving patient affordability.
Lastly, to attract investment and contribute to a more resilient and future-ready pharmaceutical industry under the Atma Nirbhar Bharat initiative, Matai suggested the government provide incentives for investments in bonds issued by pharmaceutical companies.
“We look forward to the government’s continued support and strategic initiatives to foster a robust and innovative pharmaceutical sector in India. We are confident that these measures will accelerate R&D and innovation, ultimately leading to a healthier, more resilient, and self-reliant India,” Matai concluded.