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Karnataka sees that the Union Budget has signaled pathways to rejuvenate healthcare but the pharma industry expressed that research and development incentives were overlooked.
Even as the country is euphoric that the healthcare sector has received the much-needed support, pharma industry in the country are of the view that there was nothing specific for the drug manufacturers in the country. This according to a section of the industry is because much of the benefits for Atmanirbhar came out from the government through its PLI (productivity linked incentive) scheme.
Pharma has been one of the core sectors that stayed afloat during the pandemic, said Sunil Attavar, president, Karnataka Drugs and Pharmaceutical Manufacturers Association, who observed that while the Budget 2021 is a positive one with considerable attention paid to healthcare, it would have been great if more focus could have been given to research and development for the pharmaceutical industry.
Instead the Budget found no mention even on the exemption to R&D nor any tax or other incentives for the pharma industry to set up R&D centres as this would have helped the sector to also become Atmanirbhar. It is time that India moves up the value chain and move from a generic hub to a centre for innovation, noted Attavar.
According to Kiran Mazumdar Shaw, executive chairperson, Biocon, “Budget has buoyed overall sentiment. Healthcare & well-being has received top priority, with more than doubling of the outlay including the allocation towards Covid-19 vaccination and a new scheme to strengthen the country’s primary, secondary and tertiary health infrastructure. Other positives include the higher spending on infrastructure, increased funding for strengthening the public sector R&D and innovation ecosystem, as well, as increasing the FDI cap in insurance from 49% to 74%.”
Dilip Jose, managing director & CEO, Manipal Hospitals pointed out, special attention is paid to scale up infrastructure, like critical care as well as primary and secondary care facilities through the PM Atmanirbhar Swasth Bharat programme. It is also very heartening that the FM promised higher allocations as required, because institutions absorb the funds committed at the first instance. All in all, a great beginning has been made in the journey to take our healthcare system to the world class standards. Further, the augmented government spends planned for capital expenditure by over 35% would aid job creation and growth in incomes, which would in turn enable people to spend on healthcare when required, added Jose.
Rohitashwa Prasad, Partner, J Sagar Associates noted GoI had budgeted Rs. 69,000 crore for healthcare, which was 1.6% of GDP. The budgeted amount for FY 22 shows a significant increase. If this growth were to be extrapolated, the GoI should achieve the target of healthcare spend of 2.5 – 3% of GDP as envisaged in the National Health Policy 2017 well before its target date.
Vishal Bali, executive chairman, Asia Healthcare Holding, said “Healthy India is core to India’s economic growth. The focus on Atmanirbhar Swasth Bharat Yojana shows that healthcare capacity building is now a key priority for the government. The overall capital expenditure increase of 26% should drive infrastructure acceleration, the much needed GDP growth driver. Insurance sector which is an important pillar for any country should see an exponential growth with enhancement of FDI limit to 74% from 49%.”
Ameera Shah, managing director, Metropolis Healthcare, hoped that the government partners with private healthcare to hasten this process and strengthen health services across the country. The plans to add critical care units, hospitals, 15 health emergency centers, four new national Institutes of Virology and connecting public testing labs are steps in the right direction. The proposed National Nursing and Midwifery Commission Bill may enable the industry to realize its full potential by regulating the service standards and professionalizing the nursing and midwifery services.
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