Pre-Budget 2024: Pharma sector urges government to boost R&D, Infrastructure development and policy support

Srivardhan Khemka – Director – Sanjivani Paranteral:

“To achieve a $130 billion industry by 2030, the budget should prioritise research and development, following the example of last year’s Promotion of Research & Innovation Program (PRIP) Scheme. This goal can be met by investing more in integrating technology and AI to enhance speed and accuracy, we must look at overall health care while developing the infrastructure with a focus on medical colleges, nursing colleges and reforming health insurance thereby ensuring universal health care. Further the budget must also look at increasing budget allocations to public health insurance programs to expand coverage, ensuring more people have access to necessary medications. We anticipate policies that assist the pharmaceutical sector with tax relief, such as lower or nil GST rates, to facilitate business operations. Additionally, considering the pharmaceutical sector’s reliance on exports, we expect credit schemes and policies to support international trade. Simplifying access to international markets will strengthen India’s role in the global pharmaceutical industry. Lastly, to promote the “Make in India” initiative, the budget should include low-interest rates and grants to boost domestic manufacturing setups, particularly for domestic API manufacturers.”

 Jay Shah, CEO & MD of M/s Jay Wood Industry : 

“As the Union Budget 2024 approaches, the wooden pallet sector is optimistic about the government’s focus on sustainable supply chain solutions. This industry is vital for pharmaceuticals, chemicals, and glass packaging, among others, and needs robust government support to enhance global competitiveness.

To streamline logistics, reduce transportation costs, and ensure timely deliveries, infrastructure development is key. The sector anticipates measures that include significant investments in infrastructure. Alongside this, tax incentives are sought to alleviate financial burdens on manufacturing units, facilitating increased investment in innovation and expansion. Particularly, incentives for adopting sustainable practices would benefit both the environment and businesses aiming to align with global sustainability standards.

Furthermore, Research and Development (R&D) funding is crucial for continuous innovation in materials science, sustainable manufacturing, and recycling technologies. Government grants and subsidies for R&D can drive higher efficiency and sustainability. Supporting SMEs through easier access to credit, reduced compliance burdens, and simplified regulations can significantly boost growth.

The industry also hopes for financial assistance for adopting eco-friendly technologies, including subsidies and low-interest loans for sustainable manufacturing upgrades, as well as technology transfer facilitation. Further, skill development programs are essential for equipping the workforce with modern manufacturing skills.

Moreover, the packaging industry plays a vital role in supporting the export sector. Simplifying export procedures, reducing tariffs, and providing incentives for export-oriented units can enhance our global market presence. We look forward to policies that promote ease of doing business and reduce bureaucratic hurdles.”

Karthik Kondepudi, Partner at Herbochem:

“As a nutraceutical company, we anticipate that the budget will be more focused on real investments in healthcare infrastructure, innovative medical technologies, and affordable initiatives. These essential investments should enable widespread coverage of high-quality and innovative healthcare solutions that address the population’s well-being, thereby directly contributing to economic growth. A good healthcare system is essential not only for our population’s well-being but also for the country’s overall progress. Advanced medical technologies must be invested in delivering cutting-edge therapies, improve diagnostic accuracy, and streamline healthcare delivery. Policies must be developed to treatments more accessible for patients by lowering out-of-pocket costs, increasing insurance coverage, and focusing on underserved communities. By prioritising these issues, India can build a healthcare system that focuses on creating a healthy population, allowing for economic prosperity by improving the quality of life for all of its residents.”