MUMBAI: With the coronavirus pandemic emphasizing the need for innovation more than ever, a new hope is being announced within the pharma sector of R&D policy. Budget this year.
Over the past few months, there have been discussions between the Department of Pharma and industry bodies on R&D incentives, with the government preparing a draft on the issue.
Industry experts told TOI that there is speculation about a targeted fund to strengthen knowledge-driven sectors like pharma and IT and restore tax benefits on R&D done by companies.
Over the years, an R&D fund has been announced for innovation-driven sectors, including pharmaceuticals, but it hasn’t seen the light of day.
The draft R&D policy finalized by the government includes funding for innovation for pharma and med-tech, strengthening R&D infrastructure (building innovation hubs like Singapore, Boston, San Francisco) and industry-academic collaboration. has been highlighted.
Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance said, “India, being the pharmacy of developing countries, now needs to move up the value chain. Innovation must be supported as it is going to be fundamental to the healthcare industry.”
An industry executive said that apart from reinstating the weighted average tax deduction on R&D expenditure, companies setting up innovation hubs should get tax incentives.
Tech-driven-innovative healthcare solutions have played a vital role in fighting the COVID crisis. According to Alok Roy, chairman of FICCI Health Services Committee and chairman of Medica Group of Hospitals, this year’s budget will focus on promoting these solutions through tax benefits/tax holidays and even setting up a healthcare innovation fund. should do.
This pandemic has also necessitated the need for a more self-reliant India.
The government should protect the domestic manufacturing base by increasing the customs duty on import of medical devices from the current 0-7.5% to at least 15%. Due to low customs duty,
Forum Coordinator Association of Indian Medical Device Industry Rajiv Nath said that India is importing medical devices worth Rs 46,000 crore, and more than 80% is dependent on imports.
For the Indian medtech sector to be viable and sustainable, release of sectoral payment dues, waiver of duty and cess, to free up working capital for investment in critical spare and life-saving equipment.
Roy said there is a need to re-energize the healthcare infrastructure sector, especially in Tier II and III cities through subsidized loans, which will further boost the other ancillary industry.
Over the past few months, there have been discussions between the Department of Pharma and industry bodies on R&D incentives, with the government preparing a draft on the issue.
Industry experts told TOI that there is speculation about a targeted fund to strengthen knowledge-driven sectors like pharma and IT and restore tax benefits on R&D done by companies.
Over the years, an R&D fund has been announced for innovation-driven sectors, including pharmaceuticals, but it hasn’t seen the light of day.
The draft R&D policy finalized by the government includes funding for innovation for pharma and med-tech, strengthening R&D infrastructure (building innovation hubs like Singapore, Boston, San Francisco) and industry-academic collaboration. has been highlighted.
Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance said, “India, being the pharmacy of developing countries, now needs to move up the value chain. Innovation must be supported as it is going to be fundamental to the healthcare industry.”
An industry executive said that apart from reinstating the weighted average tax deduction on R&D expenditure, companies setting up innovation hubs should get tax incentives.
Tech-driven-innovative healthcare solutions have played a vital role in fighting the COVID crisis. According to Alok Roy, chairman of FICCI Health Services Committee and chairman of Medica Group of Hospitals, this year’s budget will focus on promoting these solutions through tax benefits/tax holidays and even setting up a healthcare innovation fund. should do.
This pandemic has also necessitated the need for a more self-reliant India.
The government should protect the domestic manufacturing base by increasing the customs duty on import of medical devices from the current 0-7.5% to at least 15%. Due to low customs duty,
Forum Coordinator Association of Indian Medical Device Industry Rajiv Nath said that India is importing medical devices worth Rs 46,000 crore, and more than 80% is dependent on imports.
For the Indian medtech sector to be viable and sustainable, release of sectoral payment dues, waiver of duty and cess, to free up working capital for investment in critical spare and life-saving equipment.
Roy said there is a need to re-energize the healthcare infrastructure sector, especially in Tier II and III cities through subsidized loans, which will further boost the other ancillary industry.
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