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.
ALSO READ: Indian pharma sector expected to grow 9-11% in FY22: ICRA
“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.”
(This story has been sourced from a third-party syndicated feed, agencies. Raavi Media accepts no responsibility or liability for the dependability, trustworthiness, reliability, and data of the text. Raavi Media management/ythisnews.com reserves the sole right to alter, delete or remove (without notice) the content at its absolute discretion for any reason whatsoever.)
