Association leaders share their expectations from Budget 2025-26

Anil Matai, Director General, OPPI

“To strengthen India’s healthcare ecosystem and drive inclusive growth, the upcoming budget must prioritise increased public spending on health initiatives. This includes expanding coverage under the Ayushman Bharat scheme to the missing middle, upgrading existing Centers of Excellence, establishing new ones, and enhancing primary healthcare infrastructure.

Policy-level clarifications, such as expanded exemptions for life-saving drugs and oncology medications from import duty are vital for reducing treatment costs. Simplifying Advance Pricing Agreement (APA) procedures, including timelines for swift case resolution, sharing APA authorities’ search processes for better negotiations, and ensuring timely renewals without procedural redundancies, will also help improve efficiency and ease of doing business. 

Furthermore, expansion of the scope of section 115BAB of the Income Tax Act, 1961 to companies solely engaged in pharmaceutical R&D and providing a 200 per cent deduction rate on R&D expenditures will encourage innovation in the pharma space. Also, mandatory timelines for disposing of appeals, particularly by the Income Tax Appellate Authorities and removing turnover criteria for safe harbour provisions for R&D will also encourage innovation and investment. These recommendations are essential to build a robust, equitable, and patient-focused healthcare framework for India’s future.” 

Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance

“The Indian pharmaceutical industry is at a pivotal moment and poised for growth, targeting $ 120–130 billion by 2030 and $ 450 billion by 2047. This will position India among the top 5 innovators and No. 1 in volume. To achieve this, the Union Budget 2025-2026 should prioritise innovation, ease of doing business, and policies that strengthen the Life Sciences Ecosystem.

It would be encouraging if the Union Budget allocates at least 10 per cent of the National Research Fund to life sciences, reinstates 200 per cent weighted deductions for R&D expenditure, and expands the patent box regime to include income from patents abroad. Additionally, removing Section 194R related to marketing samples would ease business operations. Further, incentives for AI research in the pharmaceutical sector should be introduced, building on AI Centers of Excellence and medical device training from Budget 2023.

These measures in the Union Budget would enhance India’s competitiveness in life sciences and solidify its global leadership in healthcare innovation. By creating a business-friendly, innovation-driven ecosystem, India can achieve its goals, ensuring health, and prosperity for all, and fulfilling the Viksit Bharat vision.”