A pre-budget expectations survey showed increasing demand for making investments more attractive in the pharmaceutical industry.
As per the Grant Thornton Bharat survey, a majority of those surveyed opined that the government should enhance outlay in the PLI scheme, with a focus on bio-pharmaceuticals and medical devices.
“The industry expects that innovation and research & development (R&D) will be the key investment drivers,” the survey report said.
“Restoration of a higher percentage of deduction under Section 35(2AB) of the Income-tax Act, 1961 will encourage R&D and innovation.”
Notably, 85 per cent of the respondents expect restoration of a higher percentage of deduction under Section 35(2AB) of the Income-tax Act, 1961 for R&D expenditure. Besides, 81 per cent expect pharmaceutical products to be included in the ‘RoDTEP’ scheme.
“Inclusion of certain pharmaceutical products under the ‘Remission of Duties and Taxes on Export Products’ (RoDTEP) scheme, amendment of regulations around deductibility of free samples given to doctors and a lower Good and Services Tax (GST) rate on clinical trials and research activities will be a welcome move.”
According to Bhanu Prakash Kalmath S.J., Partner and Sector Leader – Pharma & Healthcare, Grant Thornton Bharat: “India’s pharmaceutical industry has played a key role in the global fight against the pandemic.”
“Enhanced outlay under the PLI schemes and encouraging exports and research & development will further advance the ‘Make in India’ vision and consolidate our position as a leading pharmaceutical supplier.”