Mumbai: With a pandemic Coronavirus emphasizing the need for more innovation than before, there is new hope in the pharmaceutical sector R & D policy which was finally announced in this year’s budget.
Over the past few months, there was a discussion between the Department of Pharmacy and Industrial Agency for R & D incentives, with the government preparing a design about this issue.
There is speculation about the funds targeted to strengthen sectors which are driven by knowledge such as Pharma and IT, and restore tax benefits in R & D carried out by the company, in industrial works told TII.
Over the past few years, there has been talks about R & D funds which were announced for sectors driven by innovation including pharmacy, but did not see the daylight.
The design of the R & D policy completed by the government highlights funds for innovation for Pharma and Med-Tech, strengthening R & D infrastructure (creation of innovation hubs such as Singapore, Boston, Sanfrancisco), and industrial academic collaboration.
“India, being a pharmaceutical from developing countries, now needs to rise the value chain.
Innovation must be supported because this will be a fundamental for the health care industry,” said Secretary General Sudarshan Jain, said the Indian pharmaceutical alliance.
In addition to recovering a 200% weighted average tax deduction in R & D expenditures, companies that set up innovation hubs must get tax incentives, said an industrial executive.
Health care solutions driven by technology have played an important role in combating the Covid crisis.
This year’s budget must focus on encouraging this solution by means of tax / tax holiday benefits and even establishing health service innovation funds, according to Alok Roy Chair, FICCI Health Services Committee, Medica Hospital Group.
This pandemic also requires the need for more independent India.
The government must protect the domestic manufacturing base by increasing customs clearance on the import of medical devices to at least 15% of existing 0-7.5%.
Because of low import duties, India imports Rs 46,000 Crore, and more than 80% of dependent imports, Rajiv Nath, the Association of the Indian Medical Device Industry Forum Coordinator.
For the Medtech India sector can survive and sustainable, there must be a neglect of duties and CESS, releasing sectoral payment contributions, to free working capital for investment in critical backup equipment and save lives.
Health care funding through subsidized loans, especially in Tier II & III cities need to be provided to reactivate the health care infrastructure sector which will improve other supporting industries, Roy added.