Push for R&D Investments and Tax Reforms to Boost India's Pharma Sector

Industry bodies urge the government to incentivize R&D investments, offer corporate tax concessions, and establish an effective intellectual property rights regime to spur growth in the domestic pharmaceutical sector. Recommendations for the Union Budget include deductions on R&D expenses, specialized training programs, and incentives for rare disease treatments.

Industry bodies are calling for government incentives to boost research and development (R&D) investments and corporate tax concessions to accelerate growth in India's pharmaceutical sector. Key recommendations for the upcoming Union Budget include deductions on R&D expenses and research-linked incentives for multinational companies.

Anil Matai, Director General of the Organisation of Pharmaceutical Producers of India (OPPI), emphasized the need for extending section 115BAB of the Income Tax Act to pharma companies engaged in R&D. This, he believes, would significantly enhance the sector's research capabilities, encompassing clinical trials and patent registration.

Enhancing intellectual property rights and providing incentives for specialized training programs and rare disease treatments are also crucial, both for advancing research-driven pharma firms and for improving patient affordability, according to Matai. Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), highlighted the sector's global manufacturing status and stressed the importance of continuous investment and innovation to maintain quality and competitiveness.

(With inputs from agencies.)