Pharmaceutical Sector - Budget Expectations

This being the UPA government’s last budget before the General Elections 2014, the Pharmaceutical Sector expects a favourable budget for itself.

In the Union Budget 2012, the then Finance Minister Pranab Mukherjee had given the pharmaceutical sector a much-anticipated boost. In his budget speech, he had granted the sector one of its wishes. The FM had approved the proposal to extend the weighted deduction of 200% for research and development expenditure in an in-house facility by 5 years beyond March 31, 2012. 

The industry, this year, is hoping to receive some incentives for the units engaged not only in R&D but in the business of contract manufacturing too. These expectations are more towards profit-linked incentives. The other long pending demand is to grant an infrastructure status to the healthcare sector which will benefit the players in this space.

The sector has also demanded that all life-saving drugs and medical devices be exempted from customs duty on import into India.

Considering the fact that this is the UPA government’s last budget before the general elections, there can be additional budgetary allocations to healthcare spending, indicating a people-centric move by the government.