Introduction

As the Union Budget 2025 approaches, the pharmaceutical and healthcare sector in India stands at a pivotal juncture. With expectations high for policy reforms and incentives, this budget could significantly impact the sector's growth trajectory.

Expectations from the Budget

Stakeholders are eagerly awaiting measures that could streamline regulatory processes, enhance R&D investments, and bolster local manufacturing. The aim is to make the sector more competitive globally while ensuring affordable healthcare solutions for the domestic market.

Innovation and R&D

With Indian pharma companies allocating a mere 6% of their revenue to R&D, compared to 20% by global peers, there's a pressing need for government intervention. Proposals include reintroducing weighted deductions for R&D expenditure and extending Patent Box benefits to encourage innovation.

Self-Reliance in APIs

India's heavy reliance on API imports, especially from China, poses significant risks. The budget could offer incentives for local API production, thereby reducing dependency and enhancing supply chain stability.

Streamlining Medical Device Imports

The lack of a clear regulatory framework for refurbished medical devices has been a challenge. Introducing policies to regulate these imports could make healthcare more accessible and affordable.

Conclusion

The Union Budget 2025 presents a unique opportunity to catalyze the growth of India's pharmaceutical and healthcare sector. By addressing key issues such as R&D investment, API self-reliance, and regulatory reforms, the government can set the stage for the sector's global leadership.