Finance Minister, P Chidambram has provided the pharma sector with a lot of sops this year, and this would definitely act as a power tonic for them.
The Budget announced a duty cut of 5 per cent from 7.5 per cent on specified pharma and biotech machinery.
The Tax benefit on R&D has been extended by 5 years, an Immunisation programme has also been announced to promote the Pharma industry.
CEO & MD at Ranbaxy, Malvinder Singh is pleased with the Budget, he says, "I am extremely happy, the Budget has been a positive message in-terms of the sops for TB, Malaria diseases. Healthcare is important for the economy to move forward."
There is also more focus on HIV eradication. Swati Piramal, director (strategic alliances and comm), Nicholas Piramal says that the sops given to the pharma sector were long needed.
"The pharma sector is a sunrise sector, we are the torchbearers of the innovative economy. We spend around Rs 2500 crore annually which is 10 times more than IT. So just a 5 year extension is very important for us, prior to this it was every year. Research takes a long time when it comes to the human body."
She is also pleased with the sops for bio-pharma sector. She further adds, "Increase in healthcare spending was long needed, so what all has been done is a small beginning."For more such reports, log on to www.moneycontrol.com
More from rediff