The life sciences sector had high expectations of the budget not only from the point of view of tax incentives, but also from a regulatory point of view. Expectations were based on the Government's vision of making India one of the top three pharmaceutical markets by 2020. This year too, no specific impetus was given to the sector.
The decision to eradicate certain noncommunicable diseases, the proposal to create two new AIIMSs, additional postgraduate medical seats, proposed amendments to the Drugs and Cosmetics Rules and new rules for medical devices are welcome.
Pharmaceutical representatives said the Union budget did not respond specifically to the imminent challenges directly affecting the key industry, but welcomed proposals from Finance Minister Arun Jaitley.
Utkarsh Palnitkar , National Head of Life Sciences Practice at KPMG India said the budget not only from a fiscal incentives perspective but also from a regulatory angle; more so, given the government's vision of making India one of the top-three pharmaceutical markets by 2020. However, this year too, no specific impetus was given to the sector. While the move to eradicate certain NCDs; the proposal to set-up two new AIIMS; additional post-graduate medical seats; proposed amendments in the Drugs and Cosmetics Rules; and new rules for medical devices are welcome, the Budget has not specifically addressed imminent challenges directly affecting the sector
The Medical Council recently amended its guidelines to encourage physicians to prescribe generic drug names. In the budget, it was indicated that amendments could also be made to the Drugs and Cosmetics Rules in the same vein. This will be a significant change if introduced and pharmaceutical companies will have to change their marketing strategies, "said Bhavik Narsana, Partner, Khaitan & Co.
Kiran Mazumdar shaw, MD & Chairperson of Biocon Ltd said, "Finance Minister Arun Jaitley has presented a Budget that boasts of several firsts. It is the first time that the railway and general budgets have been merged and planned and non-planned expenditure classification done away with."
She said, "I believe the Finance Minister has laid out a very safe budget this year operating with fiscal prudence and staying within his comfort zone. As a result, he has missed out on introducing bold measures that could have spurred non-linear economic growth in the wake of the slowdown on account of demonetisation.
The Budget has a good number of positive measures aimed at offering incentives to different stakeholders, boosting domestic spending and cleansing the country of black money. Budget 2017, presented across 10 key levers, aims to ‘Transform, Energise and Clean’ India"
