In a bid to foster innovation, the Pharma and Med-Tech companies have urged the government to allocate ten percent of the National Research Fund (NRF) towards life sciences.
They also seek the reinstatement of 200% weighted deductions for R&D expenditures in the upcoming Union budget.
This comes even as the government awaits the implementation of the ₹5,000 crore research scheme under the National Research Fund, which aims to advance innovation in deep tech and sunrise sectors.
Funding for Life Sciences and R&D Incentives
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), highlighted the need for substantial financial backing for life sciences.
He emphasized that allocating ten percent of the National Research Fund to this sector, along with reinstating the 200% weighted R&D deductions, would significantly boost research activities.
Additionally, expanding the patent box regime to include income from patents earned abroad would further incentivize innovation.
Jain also called for the removal of Section 194R, which pertains to marketing samples, as it adds unnecessary burden on businesses.
He suggested that physician samples and product reminders should be exempted from this section to simplify operations.
Industry Calls for Reforms in Medical Device Sector
The Association of Indian Medical Device Industry (AiMeD) has requested the government reduce import duties on medical devices to make them more affordable.
According to AiMeD, patients are currently paying 10 to 30 times the landed price of imported devices. Lowering import duties would alleviate this disparity and improve access to quality medical technology for healthcare providers and patients alike.
Harsh Mahajan, Chair of the FICCI Health Services Committee and founder of Mahajan Imaging and Labs, proposed additional reforms, urging the government to reduce or exempt GST on medical devices.
This measure, he believes, would make cutting-edge technology more affordable and help ensure that patients receive timely and high-quality care.
Focus on Healthcare Spending to Improve National Health
Experts believe that substantial government spending on healthcare could drive the country toward becoming a healthier nation.
Anupam Sibal, Group Medical Director of Apollo Hospitals, pointed out that if the government increases healthcare spending to 2% of GDP, as envisioned in the National Health Policy, India’s path to improved public health would be significantly accelerated.
The Pharma and Med-Tech sectors are seeking crucial support in the upcoming Union budget.
As reported by msn.com, from increased research funding and tax incentives to reforms in medical device import duties, these measures could collectively pave the way for a more innovative and accessible healthcare landscape.
