Industry stalwarts discuss pharma industry's resilience, expectations from Union Budget 2025

 

As the Union Budget 2025 approaches, key leaders in the healthcare and pharmaceutical sectors have outlined their expectations for policy measures that could drive growth, innovation, and accessibility in India's healthcare landscape.

Glenn Saldanha, chairman and managing director of Glenmark Pharmaceuticals, reflected on the industry's resilience and future opportunities. He stated that the Indian pharmaceutical industry has once again proven its remarkable resilience, navigating global challenges with agility. Initiatives such as Make in India and the PLI scheme have catalyzed growth, fostering an environment ripe for innovation. Looking ahead to 2025, our vision of 'A New Way for a New World' continues to fuel our drive to innovate, collaborate, and lead in addressing the world's most pressing healthcare challenges.

Nikkhil K Masurkar, CEO of Entod Pharmaceuticals, called for policy measures that would strengthen India's pharmaceutical ecosystem. He stated that enhanced support for research and innovation is crucial. Increased funding for R&D, particularly in next-generation molecules and AI-driven drug discovery, could drive investment and innovation. Strengthening the production-linked incentive (PLI) schemes for APIs and high-value pharma products can reduce import dependency, while better infrastructure support for MSMEs can spur innovation and job creation. Reducing customs duties on raw materials and lowering GST on essential healthcare products would make treatments more affordable and improve global competitiveness."

Chander Shekhar Sibal, vice president of the Medical Systems Division at Fujifilm India, stressed the need for a supportive regulatory environment. He explained, “To ensure access to quality care, we must work towards enhancing healthcare infrastructure. Investments in digital health platforms, telemedicine, and electronic health records can significantly improve healthcare delivery. The government should prioritize policies that encourage research and development, introducing incentives for both established companies and startups. Simplifying the GST structure to a uniform rate across all categories would significantly enhance affordability and strengthen domestic manufacturing capabilities."

Nirav Mehta, managing director & CEO of CORONA Remedies, emphasized the need for targeted policy interventions. He stated, "We are eager to see how the budget aims to boost the pharmaceutical industry through policy adjustments that foster sustainable growth and ensure widespread availability of essential medications. Boosting investments in research and development (R&D) can help solidify India's position as a hub for innovative products and environmentally friendly pharmaceutical production."

Kishore Karumanchi, CEO of Aciana, emphasized the need for higher exemptions on health check-ups and increased funding for research. He stated that AI is transforming healthcare with accurate diagnoses and personalized preventive treatments. Raising the exemption limit for health check-ups from Rs. 5,000 to Rs. 20,000 would encourage regular screenings and lower the disease burden. Additionally, allocating more funds to research in genomics, biotechnology, and AI diagnostics is vital for innovation. Tax breaks for healthcare startups and stronger public-private partnerships can accelerate the use of advanced technologies in healthcare. These steps will expand access to quality care for millions and position India as a global leader in healthcare innovation.

Bhanu Prakash Kalmath S J, partner at Grant Thornton Bharat, highlighted the importance of increasing healthcare expenditure to 2.5% of GDP. He stated, "Increasing healthcare spending to 2.5% of GDP is essential to strengthen infrastructure and expand access, particularly in underserved areas. Enhancing access through improved primary healthcare centers (PHCs) is critical for equitable healthcare delivery. Prioritizing investments in R&D and emerging technologies, such as telemedicine and AI-driven solutions, will further enhance service delivery and bridge accessibility gaps. Additionally, reducing the GST rate on health insurance premiums and hospital supplies will alleviate financial burdens on households."

Deepak Sharma, co-founder & CEO of MedLern, underscored the importance of workforce training. He said, “A well-trained workforce and robust infrastructure form the backbone of a resilient healthcare system. The budget should prioritize funding for healthcare-focused simulation-based training, e-learning platforms, and skill certification programmes. Investment in technology-driven solutions such as telemedicine hubs, AI-powered diagnostic tools, and digital health records can bridge the gap between urban and rural healthcare accessibility."

Ravi Hirwani, senior vice president of Bhailal Amin General Hospital, called for increased healthcare spending and infrastructure reforms stating, "The Indian healthcare sector is at a pivotal junction of growth. The government must increase healthcare spending to 3% of GDP, remove or reduce customs duties on medical devices and essential medicines, and grant the healthcare sector infrastructure status to attract private investments. Special incentives for hospitals in Tier-2 and below cities will help expand healthcare access. Additionally, introducing special packages for foreign nationals seeking treatment in India can enhance the country's position as a leading destination for medical tourism."