With regard to the pharmaceuticals sector, India Inc expects that innovation and research & development (R&D) will be the key investment drivers. Restoration of higher percentage of deduction under Section 35(2AB) of the Income-tax Act, 1961 will encourage R&D and innovation. 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.
Bhanu Prakash Kalmath S J, Partner and Sector Leader – Pharma & Healthcare, Grant Thornton Bharat, said, “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 and development will further advance the ‘Make in India’ vision and consolidate our position as a leading pharmaceutical supplier.”
To gauge the market sentiments and better understand the expectations from Union Budget 2022, Grant Thornton Bharat conducted a survey for pharma sector.