India's pharmaceutical industry is urging Finance Minister Nirmala Sitharaman to provide tax incentives and financial support in the upcoming Union Budget. The industry is seeking tax exemptions to promote innovation and boost research and development (R&D) in the sector. Indian pharmaceutical companies dominate the U.S. generics market and are expected to double their export sales to $55 billion by 2030. To encourage innovation at the grassroots level, the industry is requesting income tax exemptions for 5-10 years for any new molecule developed in India. The industry faces challenges such as geopolitical tensions, supply chain issues, pricing pressures, and increased scrutiny by global regulatory agencies. Despite these challenges, India remains the world's third-largest manufacturer of drugs by volume and a major hub for generic drug manufacturers.
In the recently presented Union Budget 2024-25, Finance Minister Nirmala Sitharaman proposed several changes to customs duties. The customs duty on cancer medicines and mobile phones is set to be reduced. Three cancer treatment medicines will be exempt from basic customs duty, and the duty on mobiles, accessories, and charges will be cut to 15%. Additionally, the import duty on gold and silver will be reduced to 6%, platinum to 6.4%, and custom duty on seafood will be reduced to 5%. The budget also includes exemptions for 25 critical minerals, ferro nickel, blister copper, and oxygen-free copper for resistors. However, the duty on ammonium nitrate will be increased by 10%, and PVC flex banners will become costlier with a 25% increase in customs duty. The custom duty on specified telecom equipment will be raised to 15%, and there will be a 25% increase in custom duty on non-biodegradable plastics.
These changes in customs duties aim to provide relief and support to various sectors, including the pharmaceutical industry, by reducing costs and promoting domestic manufacturing. The reduction in customs duty on cancer medicines and mobile phones will make these essential items more affordable for consumers. The exemptions for critical minerals and copper will help in the development of key industries, while the increase in duty on ammonium nitrate and non-biodegradable plastics reflects the government's focus on environmental concerns. The Union Budget 2024-25 is expected to have a significant impact on the Indian economy and various sectors, including healthcare and manufacturing.
Sources:
- [NDTV Profit](https://www.ndtvprofit.com/budget/budget-2024-what-gets-cheaper-and-what-gets-costlier) [467aad68]
- [India Today](https://www.indiatoday.in/business/story/union-budget-2024-25-key-highlights-1966802-2022-07-23) [383c366d]