Moneycontrol PRO
HomeNewsBusinessBudget 2022: Here's what the Indian pharma and medical devices sector expects

Budget 2022: Here's what the Indian pharma and medical devices sector expects

The pharma and medical devices sector has gained significant momentum owing to the government’s AatmaNirbhar Bharat initiative.

January 31, 2022 / 08:01 IST

Amid the ongoing COVID-19 pandemic and growing vaccine requirements globally, the Indian pharma and medical devices sector that played an indispensable role, is looking to strengthen the partnership with the government to sustain the momentum in 2022.

Bhanu Prakash Kalmath S J , Partner and Pharma & Healthcare Sector Leader at Grant Thornton Bharat, told Moneycontrol that incentives such as extension of 15 percent tax rate u/s 115BAB for expansion by existing companies, capital gains exemption on start-up investments, depreciation on goodwill on account of acquisition should be offered to the sector in Union Budget 2021-22.

Crediting government's AatmaNirbhar Bharat initiative for the sector's significant momentum, the expert predicted that the Budget 2022 will build upon the Production Linked Incentive (PLI) schemes and enable expansion of sensitive APIs, among other things.

“The pharma and medical devices sector has gained significant momentum owing to the government’s AatmaNirbhar Bharat initiative. The budget is expected to build on the Production Linked Incentive (PLI) schemes and encourage continued investments in capacity expansion of sensitive APIs, complex excipients, drug intermediates, biopharmaceuticals and medical devices," he noted.

Listing out more expectations from Budget 2022 he said: interest subsidies, lower GST on clinical trials and research activities, and restoration of weighted tax deduction u/s 35(2AB) can be considered by the government to encourage innovation and R&D.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

Speaking about the supply and distribution of COVID-19 vaccines, he said that the export of vaccines, formulations and devices should be incentivised to truly become the pharmacy of the world.

The Union Budget is presented each year on the very first day of February by the Finance Minister in Parliament. This year the Budget will be presented by Finance Minister Nirmala Sitharaman around 11 am on February 1 2022.

Moneycontrol News
first published: Jan 6, 2022 09:19 am

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347