‘’We need to sustain significant growth process’’

The last year has been a good year both on the domestic and foreign markets front and there is optimism that the industry will continue to be on the growth path to be in the top 10 global markets by value, by 2020. In 2013 we are hoping to see more alliances and partnerships in the industry. Indian companies will gear up their activities to capitalise the growing potential of foreign generics market what we need to do now is to sustain the significant growth process which was initiated during the last year. Some of the issues which we would like addressed include the following:

Traditionally in the pharma industry, the excise duty rate on inputs has always been higher than the excise duty rate applicable to the finished products. Weighted deduction should cover activities like outsourced clinical trials and R&D, preparations of dossiers, foreign consulting/legal fees for new chemicals entities (NCE) and abbreviated new drug applications (ANDA) filings with the US FDA. Patent defending charges. This would facilitate the companies to outsource part of research activity for achieving cost efficiencies. Further, exemption of 100 per cent profits of companies engaged in scientific research and development for a period of 10 consecutive assessment years should be extended for the companies obtaining approval till March 2013.

The 100 per cent tax-free status for biotechnology and pharma SEZs should be increased from the present five to 10 years. Anti cancer drugs should be treated as life saving drugs and it is imperative that they are exempt of all taxes and duties.

– Sujay Shetty, Leader Pharma and Life Sciences, PwC India