Budget 2023: US Industry seeks R&D Policies for India’s Pharma Sector

As the Union Budget 2023–24 is few days away, the US pharmaceutical industry recommended that India should release an R&D policy for its pharmaceutical business.

The Union Finance Minister Nirmala Sitharaman is set to present the Union Budget to the legislature for the financial year 2023–24 on 1st Feb 2023.

Karun Rishi, president of the USA-India Chamber of Commerce (USAIC) Stated, “it is past due for the Indian government to release a research and development strategy for the pharmaceutical industry.”

The USAIC, based in Boston, has been hosting the India-US healthcare summit for the past 16 years, which attracts the top of the cream of the pharmaceutical industry from both countries.

The budget should work on advancing the value chain in the biopharma industry, which is driven by research and development. In answer to a query, Rishi said that with the right policy push, India might become the global R&D hub.

He argued that the budget should reward R&D and manufacturing, particularly by improving API (active pharmaceutical ingredient) production in India, in order to protect national security and stabilize the global supply chain.

Observing that India is a bright spot in the middle of a global slowdown, he said Sitharaman and her team should focus on growth plans, increasing public spending on healthcare, capacity building, skills development, and job creation.

The finance minister should adhere to the budget deficit goal notwithstanding the difficulty. Though challenging, the finance minister should stick to the fiscal deficit target. During COVID-19 pandemic, the Indian government gave the economy a much-needed capital expenditure push and doled out subsidies. This led to a rise in the fiscal deficit, Rishi said.