Budget 2025 must introduce measures to drive innovation, manufacturing in health, pharma: Experts

New Delhi, Jan 14 The Union Budget 2025 must introduce transformative measures that drive innovation, manufacturing, and export competitiveness in healthcare and pharma sectors, said experts on Tuesday.

Finance Minister Nirmala Sitharaman will table the Union Budget 2025 in Lok Sabha on February 1.

While previous budgets have laid a strong foundation with initiatives like Production Linked Incentive (PLI) schemes and an increased R&D focus, the industry now looks forward to policies that further align with India’s ambition of becoming a $130B pharma market by 2030.

“This year’s expectations revolve around incentivising research, streamlining taxation frameworks, and fostering regulatory ease to bolster the sector’s growth and resilience in an evolving global landscape,” said Garima Malhotra, Associate Partner, Healthcare and Lifesciences at Praxis Global Alliance.

The expert pointed out the need to boost research and implored the government to increase investment into drug development parks, and research institutes and fostering academia-industry ties.

“We expect the government to introduce additional tax deductions, such as 1.25x for expenditures on training and skill development initiatives,” Malhotra said.

The industry also expects prioritising long-term financing solutions, including tax incentives, extended loan repayment periods, public-private partnerships, and the establishment of dedicated innovation zones.

The experts also stressed the need for strategic reforms in healthcare and life sciences to shape a resilient, inclusive healthcare system.

This includes key measures to streamline regulatory frameworks, accelerate R&D incentives, and introduce policies to facilitate the import of refurbished medical devices.

“Expanding import duty exemptions on life-saving drugs and oncology treatments will significantly reduce costs and enhance access. A commitment to increase public health spending to 2.5 per cent of GDP by 2025, alongside investments in rural healthcare infrastructure and a unified GST framework, will improve affordability across the system," said Munira Loliwala, VP- Strategy and Growth, TeamLease Digital.

Meanwhile, Poonam Muttreja, Executive Director of Population Foundation of India underscored the critical need to align fiscal policies and allocations with India's demographic trends, as well as investing in empowering our youth, advancing gender equality, and supporting our ageing population.

“The Union Budget 2025-26 is an opportunity to align national priorities with India’s evolving demographic realities. By investing in the health and education of youth, advancing gender equality and male engagement, and preparing for an ageing population, India can lay the foundation for inclusive and sustainable development,” Muttreja said.

Source: IANS