With less than 10 days left until the announcement of the interim budget, the pharma and healthcare sectors have lots of hope from the government. The sector expects more tax breaks, a further boost to the PLI scheme, more benefits for R&D and AI and a lot more.
Anil Matai, Director General, Organisation of Pharmaceutical Producers of India (OPPI), reckons that the concessional tax rates under Section 115BAB of the Income Tax Act, 1961, should be extended to companies engaged in R&D of pharma as well, beyond those in the manufacturing sector.
Matai said, “We also hope for the elimination of import duties on life-saving drugs, recognising that individuals should not bear substantial taxes during health crises. Simultaneously, we call for increased incentives for innovation and to attract foreign investment in advanced research.”
Nikhil Chopra, CEO and whole-time director of JB Pharma, anticipates the allocation of funds towards enhancing the pharmaceutical supply chain and distribution infrastructure, which should be coupled with the integration of the latest digital technologies to ensure a streamlined and technologically advanced system.
Speaking about India’s goal of promoting indigenous manufacturing and reducing dependency on external sources, Chopra says, “Through the incorporation of digital advancements, the efficiency and transparency of the supply chain can be significantly improved. In our quest for self-sufficiency and reduced reliance on imports, implementing well-crafted measures to streamline the production-linked incentive (PLI) scheme becomes a pivotal catalyst. The government should consider incentivising domestic API manufacturers.”
Highlighting the deaths of 58 lakh Indians to heart and lung diseases, stroke, cancer and diabetes, Gautam Khanna, CEO of PD Hinduja Hospital and Medical Research Centre, says, “The upcoming budget should focus on increasing healthcare expenditure, aiming for 2.5 to 3.5% of the total GDP, to move closer towards universal health coverage.”
Khanna further suggested incentivising health insurance and preventive healthcare will play a pivotal role in inching towards universal health coverage. To make the Indian healthcare system more accessible and affordable, ecosystems to aid the development of innovative digital healthcare delivery models and tax incentives on technology investments should be provided by the government, suggested Khanna.
Insurance Samadhan’s Co-founder and Insurance Head, Shailesh Kumar suggests initiatives toward five focus areas to help increase insurance penetration: financial literacy, encouraging health competition in the insurance industry, simplifying complex insurance terminology, increasing the sum assured and simplifying the tax implications of insurance.
Kumar reckons, “I believe that standardisation of health insurance and similar favourable announcements could be on the cards as there’s a rising interest in healthcare planning.”
Ankur Gigras, CEO and Co-founder of HexaHealth, a healthtech platform, stresses the need for a comprehensive approach to healthcare spending in the interim budget. He added that the government must prioritise equitable supply and utilisation, focusing on marginalised groups, outpatient care and dynamic cost coverage.
“Moreover, emphasis should be placed on innovative medical technologies like artificial intelligence, which may improve the quality of life for patients during operations, speed up insurance claims for required procedures, and raise the efficacy of healthcare delivery overall," Gigras said further.
Anand Roy, MD and CEO of Star Health and Allied Insurance Co. Ltd. stresses the need for a reduction of GST on retail health insurance products from the existing 18% and says, “This reduction in GST rate would not only enhance the affordability of health insurance for the general public but also contribute to increasing insurance penetration and accessibility, particularly in tier-II, tier-III cities, and rural markets.”
Pristyn Care’s Co-founder Dr Garima Sawhney emphasised the expectations of female entrepreneurs for extra incentives and PLI schemes along with interest-free loans to support them. She also expects the government to provide low-cost funding to early-age start-ups founded by women to position India as an innovation-based economy.
A viable women-centric industrial policy is the need of the hour to get prominence for women's entrepreneurship development. The startup sector would expect the budget for 2024 to continue with stability in the policies," says Dr Garima Sawhney.
