Union Budget 2024-25 reflects a forward-looking and inclusive approach

“The Union Budget 2024-25, presented by FM Nirmala Sitharaman, marks a significant milestone as the first budget of the re-elected BJP-led NDA government.

We at OPPI commend the government’s commitment to improving healthcare access and innovation in India, reflecting a forward-looking approach that aligns with our industry’s aspirations. We deeply appreciate the government’s decision to exempt three critical cancer medicines – Trastuzumab Deruxtecan, Osimertinib, and Durvalumab – from customs duties. This move will provide much-needed relief to cancer patients by reducing the financial burden of these life-saving drugs. The current customs duty of 10 per cent was a significant cost barrier, and this exemption is a welcome step towards making advanced cancer treatments more accessible.

We appreciate that the Government of India has reiterated the importance and necessity of Patient Assistance Programmes (PAP) offered by the pharmaceutical industry to improve access to life-saving drugs by extending the customs duty waiver on drugs and medicines imported to India for the supply under PAP through to March 31, 2029.

The clarion call of ‘Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan’ by Prime Minister Narendra Modi has once again been reiterated with Innovation and Research and Development being announced as one of the nine priority areas envisaged by the Government in this budget.

The operationalisation of the Anusandhan National Research Fund is a progressive step towards bolstering basic research and prototype development in India. Furthermore, the establishment of a financing pool of Rs 1 lakh crore to spur private sector-driven research and innovation is a landmark initiative. This fund is expected to catalyse significant advancements in pharmaceutical R&D, fostering an ecosystem of innovation. The government’s ongoing efforts to enhance the ‘Ease of Doing Business’ through initiatives such as the Jan Vishwas Bill 2.0 and incentivising states to implement business reforms action plans and digitalisation are indeed commendable. Simplifying regulatory processes and reducing these hurdles will create a more conducive environment for pharmaceutical companies to operate, innovate, and expand.

While we appreciate the positive strides taken in the Union Budget 2024, we were also hoping that the government could announce incentives for pharma companies to develop medications for rare diseases affecting small populations. This may also help in attracting investment into India to undertake R&D for rare diseases. We were hoping for focused measures like the establishment of more CoEs for the management of rare diseases. We were also hoping for the stricter and unambiguous enforcement of IP regulations required for Pharma MNCs to introduce newer innovative therapies for Indian patients. The incentivisation of R&D investments in India is necessary as it will be a significant move towards Atma Nirbhar Bharat and a more resilient and future-ready pharmaceutical industry. 

Overall, the Union Budget 2024 reflects a forward-looking and inclusive approach, and the pharmaceutical sector looks forward to actively participating in and contributing to the realisation of these transformative initiatives.”