As Prime Minister Narendra Modi’s administration prepares to publish a federal finance budget in July, India’s pharmaceutical businesses are looking for tax breaks and funding for research on novel pharmaceuticals.

In his third tenure as prime minister, Modi will make his first significant policy statement with the next budget.

If India hopes to maintain its reputation as the “pharmacy of the world” for its reasonably priced medications, experts advise that its drug producers concentrate on creating sophisticated medications that go beyond the typical generic selection.

“If the Indian government can give some income tax exemptions for 5-10 years for any new molecule developed in India…that can pull innovation to grassroot level…companies will start investing in innovation,” Bharat Biotech’s Chairman Krishna Ella told Reuters on the sidelines of an event in Hyderabad recently.

Covaxin, India’s first domestic COVID-19 vaccine, was created by Bharat Biotech.

India is the third-largest medication maker in the world by volume, after the United States and China, and is a centre for generic medicine manufacturers. By the end of the decade, the country’s pharmaceutical sector is estimated to be worth $130 billion.

Generic medications are less expensive than name-brand medications.

Research company Bernstein stated in March that India has to develop a home market where new medications may be viable when priced appropriately.

In an open letter to the prime minister, Bernstein stated, “They (pharma companies) do not want to be in the business of spending millions on clinical trials with no pricing power.”

The company added that in order to promote innovation, insurance coverage for innovative pharmaceuticals and harmonising regulatory norms for clinical trials and manufacturing are necessary.

Since 2020, India has provided incentives to encourage the domestic production of a wide range of goods, including medications and drones. However, the incentives are not currently available to makers of innovative medications.

“I think government is evaluating on how their existing scheme is working…but industry is expecting a policy from the government to boost research and development in companies,” HIV drugs maker Hetero Drugs’ Chairman Partha Saradhi Reddy said.

India is predicted by the government-backed Pharmaceuticals Export Promotion Council of India (Pharmexcil) to quadruple its export sales to $55 billion by 2030, making it the largest country in the world for generic pharmaceuticals.

Raja Bhanu, director general of Pharmexcil, stated, “And if you want to have this flag going high in the entire globe and again…I think probably we have to look a little bit out of the box.”

(Adapted from ThePrint.in)