Posted by : Varun Doshi
On : 05 July 2014
Comments : 0
Views : 1808
He raised his voice a sharply after the Budget 2013. The man who was then one of India's many chief ministers a little over a year later has became India's prime minister today. In about a week from now his government will present its first budget.
Can he deliver the perfect budget for all and more importantly can he keep everyone happy, is the question? Healthcare in India is one of the important sectors of our economy and has many expectations from the Modi led government. With a CAGR of approx 15% expected to touch USD 158.2 Billion in 2017 from USD 78.6 Billion in 2012 it is a sector which cannot be ignored.
Let's see below what are the expectation from the Budget 2014:
1) Doctors expect a 3% of GDP allocated to health care.
2) Medical devices sector requires incentives for growth.
3) Expect increase in tax rebate for preventive check-ups.
4) Increase healthcare expenditure to 2.5% of GDP.
5) Allowing of 100 percent Foreign Direct Investment in Health and Medical Services.
6) 3.All excisable goods used for R&D purposes including raw materials used for manufacturing lifesaving drugs to be made exempt from Central Excise Duty.
7) 100 percent exemption of Excise/Customs Duty on all lifesaving medicines - Anti-Cancer, Anti-AIDS, Pediatric Vaccines etc., diagnostic kits for infectious diseases and molecular diagnostics for critical infections etc.
8) Import of all capital goods, raw materials, consumables and reference standards for R&D purposes must be fully exempted from customs duty and other related duties.
9) The weighted deduction of 200 percent of R&D expenses in an in-house facility should be increased to 300 percent and extended for a further period of five years.
10) Expenditure eligible for weighted deduction should also include land, building, expenditure on product registration in foreign countries.
11) In order to make India the hub of Biotech and Bio-Manufacturing, substantial investment should be made in these sectors. Allocate Rs 500 crores each year from the R&D cess accessible by the Technology Development Board to stimulate the biotech sector.
12) A tax holiday of 10 years for indigenously developed bio-pharma drugs should be allowed.
13) In order to make India the hub of Biotech and Bio-Manufacturing, substantial investment should be made in these sectors. Allocate Rs 500 crores each year from the R&D cess accessible by the Technology Development Board to stimulate the biotech sector.
14) Medical device industry expects incentives in R&D, manufacturing hubs and duty cuts
If you have any other recommendations or suggestions for budget 2014, please don't forget to comment in the section below.