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

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.