Indian pharma companies seek to receive incentives...
Indian pharma companies seek to receive incentives...With the incoming government prepared to unveil the 2024 Union Budget on July 23, indian pharmaceutical businesses are hoping to receive tax breaks and financial support for their research and development of pharmaceuticals, according to a Reuters story.Why is the pharmaceutical sector in india significant?After the US and China, india is the third-largest producer of pharmaceuticals. By the end of this decade, the indian pharmaceutical sector is expected to be worth $130 billion. india is renowned for being a center for generic medications, which are less expensive variants of name-brand medications.Since 2020, india has provided drug incentives; however, these have not yet been extended to new or innovative drugs. The Pharmaceuticals Export Promotion Council of india (Pharmexcil) projects that by 2030, India's generic medication exports—which currently account for the majority of the US generics market—will have doubled to $55 billion.Why are incentives desired by pharmaceutical companies?In march of this year, asset management and research firm Bernstein stated that in order to foster innovation, india must establish a domestic market where new drugs can be developed and produced profitably at the appropriate cost. The firm also stated that insurance coverage for novel drugs and the establishment of updated regulatory standards for clinical trials and manufacturing are necessary.In an open letter to the prime minister, Bernstein stated, "They (pharma companies) do not want to be in the business of spending millions on clinical trials with no pricing power." krishna Ella, chairman of Bharat Biotech, told Reuters on the fringes of an event in hyderabad on friday that "innovation can be pulled to the grassroot level if the indian government can give some income tax exemptions for 5-10 years for any new molecule developed in India." "Businesses will begin to invest in innovation."