Increased allocation in healthcare from Union government budget to widen clinical trials activity with improved infrastructure, said Sanjay Vyas, EVP, global SBU head-clinical logistics & global safety services and managing director India at Parexel.
With India focused more on innovation over the last two years and the government taking a keener look at healthcare aligned with the SDG-3 goals of 2030, we would expect a substantial increase in the FY 22 allocation to the overall research budget. To aid in the growth of research in the pharmaceutical industry, the budget should include supporting policies, streamlined regulations, and straightforward GST requirements. Making business more convenient will boost investment and support the sector’s sustained growth, he added.
India is already attained the position of the most populous country in the world. Therefore it is prudent to raise our healthcare budget allocation to around 3% of GDP. This amount could be allocated towards further improving the Infrastructure, quality of healthcare and technical staff, funding technical improvements, and preventive care, said Vyas.
We expect the government to revisit the country's current allocation of R&D expenditure. Specifically, in healthcare R&D, we expect at least an allocation of 1% of GDP. This will serve as the lifeline to ensure that India will reach a $130 billion market size by the end of 2023, noted Vyas.
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