Budget 2022: Pharma industry expects tax consessions, higher healthcare allocation

The domestic pharmaceutical
sector is expecting an increase in the overall fund allocation for the
healthcare sector in the forthcoming Union Budget. The industry seeks a stable
policy to promote research and development (R&D) and continuation of
tax concessions on various drugs. Besides, the industry also expects
simplification of compliances and processes to enhance ease of doing business.

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S Sridhar, president of the
Organisation of Pharmaceutical Producers of India (OPPI), said he was hoping
for an increase in the budgetary allocation for health from the current 1.8% to
the 2.5-3% of the GDP as anticipated in the National Health Policy 2017. Along
with this, a separate allocation for biopharmaceutical R&D is
essential.

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Sridhar said the pharma sector
has seen a significant boost over the past year, especially in ensuring the
availability of Covid-19 vaccines. The budget for 2022 will be crucial to
accelerate sectoral growth and access to innovative health solutions for
various diseases.

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Explaining in detail, he said
that government should continue with the existing customs duty concessions for
medicines as any disruption in the current scenario will impact the
availability of such medicines at affordable prices. The Centre should consider
the NPRD’s proposed import duty exemptions for rare disease innovator drugs
developed globally.

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For the knowledge-driven
pharmaceutical industry, innovation and R&D is crucial, said Sudarshan
Jain, Secretary-General of the Indian Pharmaceutical Alliance (IPA).

He added that to improve ease
of doing business in the pharma industry, additional measures are required such
as emphasis on simplification of processes. Introducing specific provisions to
eliminate bottlenecks will encourage investment and contribute to the growth of
the industry in the long run.

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Healthcare industry body
NATHEALTH stated that considering the Covid-19 pandemic, it is essential to
build capabilities in telemedicine, home care and senior care so that
people can access critical healthcare services equitably.

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NATHEALTH president Harsh
Mahajan told PTI that the pandemic has made us realize the need of providing
hospitals in Tier II and Tier III towns. Higher budget allocations are
needed to develop adequate infrastructures such as diagnostic centers, oxygen
beds, ICUs and oxygen plants in smaller cities. This will also help in
generating employment and increase the resilience of the health system.