Budget 2012: Pharma sector expectations
The report further mentions that a modest decline in India’s GDP growth widened its fiscal deficit more significantly than observed elsewhere.
Below are the Pre-Budget expectations on the pharmaceuticals sector by Anjan Sen, Director, Strategy & Operations, Deloitte in India.
• The Pharmaceutical Policy has been pending for some time and it is high time the same is finalized to remove the suspense. The pricing control that has been suggested will severely impact the good growth the industry has been seeing over the last few years. The price monitoring mechanism that is in place should be adequate to keep prices under control.
• The implementation of GMP norms should be done properly so that quality medicines are available to the people of India.
• There should be a relook taken at the FDI norms as this added control from the CCI will adversely impact investor sentiments and slowdown M&A activity in future. There can be other mechanisms considered to prevent monopolistic situations and prevent potential rise of prices of medicines
• There should be further incentives provided for R&D investment in the pharmaceuticals and biotech sector to encourage local innovation
• Similarly, encouragement should be given to industry by setting up comprehensive pharmaceutical hubs that will focus on research, manufacturing, etc. like the “Biopolis” in Singapore. This will also attract FDI in this sector. In addition, Indian scientists and researchers working abroad and interested in returning back should be given tax incentives for 5 – 10 years as is given to corporates.