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Increasing expenditure and waiver on customs duty will boost healthcare sector
March, 02nd 2013

Increasing expenditure on healthcare and healthcare infrastructure is something which the industry is looking forward during the Union Budget 2013 to help it grow.

Other provisions such as making expenditure on health check ups entirely tax deductible, increasing the limit on the deduction of medical insurance premium and a waiver on customs duty on imported medical equipments are measures which could boost an industry which is now spreading wings.

Drug makers do not expect any major sops in the Union Budget 2013. Raising the weighted deduction on Research and Development(R&D) expenditure to provide a fillip to such activities is something that the industry desire during almost every budget.

Observing that India's life science industry is poised for spectacular growth and international participation, Corporate America has sought major reforms in the country's health sector including FDI and global collaboration in life sciences.

In a pre-budget memorandum, submitted to the Union Finance Minister, P Chidambaram, the US India Business Council (USIBC) said it was concerned over the several recent policy initiatives of the Indian Government in this regard.

USIBC said the industry has several serious concerns regarding intellectual property.

The Organisation of Pharmaceutical Producers of India also wants several adjustments in the Budget. Some of them include rationalisation of customs duty, customs duty exemption to life saving drugs, cut in customs duty for import of drugs and much more.

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