Pharma sector gears up for Budget 2024-25; Calls for innovation and regulatory reforms

 Nandini Piramal, Chairperson, Piramal Pharma, emphasises the need for strengthened regulatory frameworks and strategic partnerships to bolster exports and economic growth in the pharmaceutical sector :

 “As we approach the upcoming budget, we’d like to underscore how strengthening regulatory frameworks and fostering strategic public-private partnerships can go a long way in enhancing India’s competitiveness on the global pharmaceutical landscape. Recognising the pharmaceutical industry’s substantial contribution to India’s exports, we eagerly anticipate schemes that provide fiscal incentives to encourage such exports. These measures will empower pharmaceutical companies to further invest in creating/maintaining world class facilities, thereby significantly contributing to the nation’s economic growth. By streamlining regulatory processes and encouraging collaborative initiatives, we can accelerate the delivery of high-quality, affordable healthcare solutions worldwide.

As we look forward, Pharma companies need to remain committed to advancing healthcare innovation on a global scale. The upcoming budget presents an opportunity to bolster our nation’s capabilities in driving transformative healthcare solutions, reinforcing our position as a preferred partner for global pharma collaborations.”

Madhur Singhal, Managing Partner, Pharma, at Praxis Global Alliance, advocates for allocation to the PLI scheme and streamlined regulatory processes to support pharmaceutical and biotechnology sectors:

“ Rs 6,200 crore allocation for the PLI scheme (FY25) across 14 sectors including pharmaceuticals and medical devices to reduce import dependency. Streamlining the regulatory framework for faster approval and availability of new drugs and devices.

Dr Shrey Kumar Srivastav, highlights expectations for increased R&D incentives, GST revisions, and a higher healthcare budget allocation to foster indigenous manufacturing and ensure accessibility of medicines:

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 The Indian pharmaceutical industry is awaiting the upcoming healthcare budget, hoping for measures that will enhance their growth and solidify India’s position as a global leader. Indian Pharmaceutical sector trying to reach the USD 130 Billion target by 2030.

key expectations include;

1) Strong Focus on Innovations: research in the areas of cell and gene therapy, new molecular entities, biologics and biosimilars should be promoted.

2) R&D Engine: The industry seeks increased incentives for research and development, such as tax deductions. This may fuel innovation, particularly for diseases prevalent in India.

3) Promoting indigenous manufacturing, and ensuring the affordability and accessibility of medicines will give boost to central government initiative of ‘Vocal for Local’.

4) A streamlined regulatory framework for drug development and approval is very important to get drugs approval quicker, but maintains the high safety standards patients deserve.

5) A revision of the GST on Active Pharmaceutical Ingredients can significantly reduce production costs.

6) An increase in the overall healthcare budget allocation would provide more resources for research, infrastructure development, and potentially higher public drug procurement, benefiting both the industry and patients.

7) Intellectual property protection  should be promoted and will incentivise innovation and attract foreign investment in R&D within India.

The industry hopes the upcoming budget will create a more productive ecosystem for growth and innovation.