Union Budget 2025: Drive for Innovation in Healthcare and Pharma, Say Experts
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Synopsis
Experts advocate for transformative measures in the Union Budget 2025 to enhance innovation and manufacturing in healthcare and pharma sectors, aligning with India's goal of becoming a $130B pharma market by 2030.
Key Takeaways
- Emphasis on innovation and manufacturing in healthcare
- Need for increased R&D funding and support
- Long-term financing solutions and tax incentives
- Streamlined regulatory frameworks for easier imports
- Alignment of fiscal policies with demographic trends
New Delhi, Jan 14 (NationPress) The Union Budget 2025 is anticipated to unveil transformative measures aimed at enhancing innovation, manufacturing, and export competitiveness within the healthcare and pharmaceutical sectors, according to industry experts on Tuesday.
Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025 in the Lok Sabha on February 1.
While previous budgets have established a solid groundwork through initiatives such as Production Linked Incentive (PLI) schemes and heightened focus on R&D, the industry is now eager for policies that align with India’s goal of achieving a $130 billion pharma market by 2030.
“This year’s aspirations focus on incentivizing research, refining taxation frameworks, and promoting regulatory ease to enhance the sector’s growth and resilience in a changing global environment,” stated Garima Malhotra, Associate Partner at Praxis Global Alliance.
The expert emphasized the necessity to boost research and urged the government to increase funding for drug development parks, research institutions, and enhance collaborations between academia and industry.
“We anticipate the government to introduce additional tax deductions, such as 1.25x for spending on training and skill development initiatives,” Malhotra added.
The sector also looks forward to prioritizing long-term financing solutions, including tax incentives, extended loan repayment terms, public-private partnerships, and the creation of dedicated innovation zones.
Experts stressed the need for strategic reforms within healthcare and life sciences to cultivate a resilient and inclusive healthcare system.
This encompasses essential measures to simplify regulatory frameworks, expedite R&D incentives, and implement policies to ease the import of refurbished medical devices.
“Widening import duty exemptions on life-saving drugs and oncology treatments will notably lower costs and improve access. A pledge to elevate public health spending to 2.5% of GDP by 2025, along with investments in rural healthcare infrastructure and a unified GST framework, will enhance affordability throughout the system,” remarked Munira Loliwala, VP of Strategy and Growth at TeamLease Digital.
In the meantime, Poonam Muttreja, Executive Director of the Population Foundation of India, highlighted the urgent need to synchronize fiscal policies and allocations with India's demographic shifts, while also investing in empowering youth, promoting gender equality, and supporting the elderly.
“The Union Budget 2025-26 presents a chance to harmonize national priorities with India's changing demographic landscape. By investing in youth health and education, promoting gender equality and male engagement, and preparing for an aging population, India can establish the groundwork for inclusive and sustainable growth,” Muttreja concluded.
