The pharma industry is looking for clarity on pricing mechanism. It would help to keep excise duty minimum. The current transfer pricing mechanism is subject to internal taxes, there needs to be a clarity on how the government plans to make it more transparent. There also has to be an increase in R&D spend as a part of the GDP, more on NIPER like institutes. Most of the biotech clusters today are being driven by PE players, there should be a specific amount earmarked in the budget for cluster formation. GoI should also increase the ambit of life saving drugs and extend a custom duty on them. Introduction of a uniform or flat tax code is also required along with an increase in hospital spending. It needs to be seen as to how will the government procure medicines worth Rs 27 crores, would price be the only consideration, how does it plan to do drug testing, these are some questions that need to be answered. Also an increase in expenditure on exports and incentives for the same would help boost Indian exports to the US and help branding of Indian generics abroad.
– Ajay Kumar Sharma, Pharmaceutical and Lifesciences Practice, Head Frost & Sullivan