Healthcare and pharma sectors anticipate tax breaks, digital infrastructure boost, and incentives for innovation in the upcoming interim budget.
The healthcare and pharma sectors anticipate tax breaks, and digital developments:
As the interim budget is approaching, the healthcare and pharma sectors anticipate tax breaks, more funds for promoting the pharmaceutical supply chain and distribution infrastructure, and funds for digital developments as well.
To make the sector affordable and accessible to all, the industry also expects to foster health insurance and preventive healthcare -- helping you to lead a longer, healthier life
Hope for increased Tax breaks:
With few days left for an interim budget announcement, the healthcare and pharma industries expect high tax breaks, a further benefit to the PLI scheme, greater support for Research and Development (R&D), AI, and more.
Anni Matai's Perspective:
Anni Matai, Director General, Organisation of Pharmaceutical Producers of India (OPPI), believes that the concessional tax rates outlined in Section 115BAB of the Income Tax Act, 1961, should be expanded to the companies involved in R&D of pharma, along with those in the manufacturing sector.
Matai said, “We also expect for the import duties elimination on life-saving medicines, considering that individuals should not pay high taxes during health emergencies. At the same time, we hope for high incentives for innovations and measures to attract foreign investment in ground-breaking research.”
Nikhil Chopra’s expectation:
Nikhil Chopra, CEO and Director of JB Pharma expects the allotment of funds towards improving the pharmaceutical supply chain and distribution infrastructure by incorporating the latest digital technologies to establish an efficient and technologically advanced system.
Talking about India’s aim of promoting traditional/domestic manufacturing and lowering external sources dependency, Chopra says, “The efficiency of the supply chain can be improved by integrating digital advancements. In our view of self-sufficiency and reduced reliance on imports, implementing efficient measures to streamline the PLI scheme becomes a crucial factor. The government should consider providing incentives to domestic API manufacturers.”
Gautam Khanna's Statement:
Gautam Khanna, CEO, of PD Hinduja Hospital and Medical Research Centre, featuring the deaths of 58 lakh Indian people due to heart and lung diseases, cancer, stroke, and diabetes, says, “To move closer towards Universal health coverage, the forthcoming interim budget should pay attention on raising healthcare expenditure, aiming of 2.5 to 3.5 percent of the total GDP.”
Khanna suggested, “Expanding health insurance and preventive healthcare will play a major role in progressing towards universal health coverage. The government should provide ecosystems to help in the development of the digital healthcare delivery models and offer tax benefits on technology investments, to make the Indian Healthcare systems affordable and accessible.”
Shailesh Kumar's Recommendations:
Shailesh Kumar, Insurance Samadhan’s Co-founder and Insurance Head, suggests dynamic initiatives toward five important areas to assist in increasing insurance penetration: encouraging health competition in the insurance industry, financial literacy, increasing the sum assured, simplifying complex insurance terminology and streamlining the tax implications of insurance.
Kumar says, “As there’s an increasing interest in healthcare planning, I believe that the health insurance standardization and similar favorable announcements could be on the cards.”
Ankur Gigras's Call for a Holistic Healthcare Approach:
The CEO and Co-founder of HexaHealth, a health-tech platform, Ankur Gigras, reiterated the importance of a holistic approach to healthcare expenditure in the upcoming interim budget. Focusing on the health of marginalized groups, cost coverage, and outpatient care, the government should give priority to equitable supply and use of healthcare services, he added.
Gigras suggested, “To promote the quality of life for patients during operations, speed up insurance claims, and increase the efficiency of healthcare services, the government should focus on developing innovative medical technologies like AI”
Anand Roy stressed the reduction of GST Rate on Health Insurance
MD and CEO of Star Health and Allied Insurance Co. Ltd, Anand Roy stressed, the necessity for a GST reduction on retail health insurance products, which is currently at 18%, and said: “The GST rate reduction would not only improve the health insurance affordability for the people but also increases insurance accessibility and penetration, especially in rural markets and tier-II, tier-III cities.”
Dr Garima Sawhney: Expectations of Female Entrepreneurs
Dr Garima Sawhney, Pristyn Care’s Co-founder, highlighted the female entrepreneur's expectations for additional incentives and PLI schemes beyond interest-free loans to support them. To position India as an innovation-based economy, Dr Garima expects the government to give low-cost funding to budding start-ups founded by women.
A feasible women-centric industrial policy is required for women's entrepreneurship development. The startup industry would anticipate the 2024 budget to maintain consistency in the policies, Dr Garima Sawhney added.
