Budget 2024: Indian Pharma Sector seek incentives for innovation

The upcoming budget announcement holds immense significance for the future of Indian pharma sector.

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Budget 2024
Budget 2024

Last Updated on July 12, 2024 by The Health Master

Indian Pharma Sector

The Indian pharma sector, a global leader in generic drug production, is poised for a potential transformation.

As the new government prepares to unveil the 2024 Union Budget on July 23rd, Indian pharma sector is eagerly anticipating financial assistance and tax breaks specifically aimed at propelling the development of innovative drugs.

Why is Indian Pharma Sector a Powerhouse?

Global Leader in Production:

India stands tall as the world’s third-largest manufacturer of pharmaceutical drugs, trailing only the US and China.

This dominance translates into a projected market value of a staggering $130 billion by the year 2030.

The Generic Drug Hub:

India has carved a niche for itself as a premier hub for generic drugs, offering cost-effective alternatives to brand-name medications.

This focus on affordability has fueled its success in the global market, particularly in the US.

Building a Future of Innovation

While India excels in generic drug production, a shift towards creating novel drugs is crucial for sustained growth.

Here’s why incentives are essential:

Profitable Innovation Ecosystem:

Asset management and research firm Bernstein emphasized the need for a domestic market that fosters innovation at a commercially viable price point.

Their open letter to the Prime Minister called for insurance coverage for novel drugs and updated regulatory frameworks to streamline clinical trials and manufacturing processes.

These factors, combined with tax breaks, would create a more attractive environment for research and development.

De-risking Innovation:

The high-risk nature of drug development, particularly the high costs associated with clinical trials, discourages companies from venturing into uncharted territory.

Krishna Ella, chairman of Bharat Biotech, highlights the potential impact of tax breaks on innovation.

He suggests offering income tax exemptions for a period of 5-10 years for any new molecule discovered in India.

This financial incentive, he believes, would incentivize companies to invest in research and development, ultimately leading to a surge in groundbreaking discoveries.

The upcoming budget announcement holds immense significance for the future of Indian pharma sector.

By implementing the right financial and regulatory incentives, India can transform itself from a generic drug powerhouse into a global leader in novel drug discovery, creating a healthier future for all.

Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.

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