Budget 2014: What's there for Indian pharma?
July 15, 2014: The measures announced in the Union Budget for 2014-15 by Mr Arun Jaitley, Union Minister for Finance, Government of India is expected to propel the growth of the Indian pharmaceutical sector. Announcements like the hike in the FDI cap for the insurance sector and setting up of 15 Model Rural Health Research are expected to play an important role in the growth of the Indian pharmaceutical sector.
The increase in the foreign direct investment (FDI) limit to 49 per cent is expected to both help the patients and the pharmaceutical industry in India. The Government of India also made its intent clear to move towards Health for All and announced key initiatives like free drug service and free diagnostics service. The Government of India is planning to take up these issues on a priority basis.
The rural health research centres are expected to put an overall positive impact on the Indian pharma sector highlighting the healthcare issues suffered by rural population and helping the Indian pharmaceutical companies to offer feasible solutions to the challenges. Other measures like setting up of four additional AIIMS and 12 government medical colleges are expected to result in improved quality of medical education and access to healthcare.
Experts believe that the moves announced in the Union Budget will provide the desired push to the Indian healthcare and pharmaceutical sector. The increasing access to healthcare will help the pharma companies to expand their consumer base. At the same time, the increased FDI limit in the insurance sector will help the healthcare sector to grow rapidly.