Seeking a Boost in Research Funding

In an ambitious move to accelerate innovation, the pharmaceutical and medical technology sectors are advocating for a significant allocation of the National Research Fund. They propose that at least 10% of the fund be dedicated to life sciences. Additionally, there's a strong push for the reinstatement of 200% weighted deductions for R&D expenditures in the upcoming Budget. This initiative aims to enhance the research capabilities within these critical sectors.

Challenges and Opportunities

Despite the potential benefits, the industry faces challenges, particularly with the reduction of tax incentives on R&D from 200% to 100% since 2020-21. Industry leaders argue that reverting to the higher deduction rate could significantly spur innovation. Moreover, there's a call to expand the patent box regime to include income from patents abroad, which would provide a much-needed boost to the sector's global competitiveness.

Streamlining Business Operations

Another critical issue is the request to remove Section 194R related to marketing samples, which is seen as a hindrance to business operations. By excluding physician samples and product reminders from this section, companies could operate more efficiently, thereby enhancing their ability to innovate and deliver quality healthcare solutions.

Making Medical Devices More Accessible

The Association of Indian Medical Device Industry (AiMeD) is advocating for a reduction in import duties on devices to make them more affordable for patients. Currently, patients are paying 10-30 times the import landed price of these devices. Reducing or exempting GST on medical devices could make cutting-edge technology more accessible, ensuring that patients receive timely and quality care.

Looking Ahead

As the government considers these proposals, the potential impact on the healthcare sector is immense. Increasing government spending on health to 2% of GDP, as envisaged in the National Health Policy, could fast-track India's journey to becoming a healthier nation. The pharma and med-tech sectors remain hopeful that these measures will be implemented, paving the way for a new era of innovation and healthcare excellence.