India is an important emerging market for the Pharmaceuticals and Life Sciences industry. There are a lot of multinationals having business operations in India or actively looking to make foray into India and which were probably looking forward to the presentation of the Indian Union Budget by the Finance Minister on 6th July, 2009.
Normally, the Budget is released in February but this year it was postponed due to general elections. Congress party led United Progressive Alliance won a decisive mandate and formed the Government with Dr. Manmohan Singh as the Prime Minister. This Budget is the first important step reflecting Government's intention and the 'will' to deliver on their electoral promises. Given that fact and the current domestic and international economic scenario, the Budget is a good balancing act between economic reality and political compulsions.
From a Pharmaceuticals point of view, the budget brings policy initiatives mainly around Research and Development (R&D) for new drug molecules, Clinical Trials, Pricing and Goverment investment in R&D. From a tax perspective, the new policies have special impact on Income tax, Service Tax, Customs, Central Value Added Tax, Central Sales Tax and Goods & Service Tax.
For full details on the specific proposals for the sector click on the following link:
For a full overview of the budget click on the following link: