Rating: 2.5/ 10
It is too early to be measure the impact that the new Government has had on the economy and markets. The Prime Minister and his Government’s affirmative and positive stand on important issues like economic policy, reforms with the emphasis on e-governance, the manufacturing sector, affordable housing, easing of FDI norms and improving relations with the international countries has reaffirmed confidence in India’s growth story- the prime reason behind what has moved the markets upward. A lot needs to be done in terms of true policy reform and we have to give the government some time to set the wheels in motion.
Having said that, similar sentiments cannot be shared about the pharma sector. The new Government hasn’t made any new provisions for tax incentives to encourage innovation in R&D and assist in developing and honing Indian IP. The Government spoke about formulating a clear roadmap for GST which is still unclear and something the industry is eagerly awaiting. Further, the inclusion of additional key drugs under the ambit of drug pricing will have an undesirable and adverse impact on the pharma industry.
– Lupin
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