Budget 2025: Experts Call for Measures to Boost Healthcare and Pharma Innovation
Experts have asked the Union Budget 2025 to undertake transformational initiatives for India's healthcare and pharmaceutical industries toward making this sector a driving force in terms of innovation, manufacturing, and export competitiveness. The finance minister, Nirmala Sitharaman, will present the Union Budget on February 1. The stakeholders expect more aligned policies for achieving India's $130 billion target pharma market size by 2030.
The industry is looking for further policies that can catalyze long-term growth, while previous budgets have provided a strong foundation through initiatives like the Production Linked Incentive (PLI) schemes and an increased focus on research and development (R&D). This year's expectations are focused on incentivising research, simplifying taxation frameworks, and creating a regulatory environment that fosters growth in a rapidly evolving global market", said Garima Malhotra, Associate Partner at Praxis Global Alliance.
Experts have urged government to invest heavily in drug development parks, in research institutes. There is further a need to encourage stronger collaboration between academia and industry. Additionally, Malhotra has termed for more sops in form of tax rebates, at least on investing in training and skill development, strengthen human capital too.
Industry also hopes for reforms that would further expand long-term financing solutions, including tax incentives, extended loan repayment periods, and public-private partnerships. Innovation zones dedicated to healthcare and pharma sectors could be established to support the growth of these sectors, experts say.
Other suggestions included streamlining healthcare and life sciences regulations, accelerating R&D incentives, and easing the import of refurbished medical devices. Munira Loliwala, VP of Strategy and Growth at TeamLease Digital, urged the government to increase the exemption of import duty on life-saving drugs and oncology treatments so that costs come down and accessibility improves. She also suggested that public health spending be increased to 2.5% of GDP by 2025 and that the rural healthcare infrastructure be improved.
Poonam Muttreja, Executive Director of Population Foundation of India emphasized the need for fiscal policies being aligned with the demographic trends so that investments go into youth empowerment and gender equality but also into proper care for ageing populations.
