Budget 2025: 3 key expectations by Pharma leaders to boost Contract Manufacturing business among others | Stock Market News
Budget 2025: The Nifty Pharma Index though is down 9%,during year to date in January, with corrections in the markets Nevertheless expectations remain high for the pharma sector as a whole and outlook for Contract drug Research and Manufacturing is looked at with optimism
1.PLI Scheme extension to Contract Research and manufacturing
Leaders as Jonathan Hunt, MD and CEO of Syngene International said that I am going to wait and see what’s in the budget, but in general, I think we have seen the the government in India over the recent years pay more attention to our industry, particularly the Pharmaceutical industry with the PLI scheme. They’ve done quite a lot in recent years and can do more for Contract Research (CDMO business . By tradition, it’s been more focused on the manufacturing generic industry, but our industry’s got great opportunities to grow and I’d look to see the government supporting CDMO, said Hunt.
Dr. Saloni Wagh, Managing Director Supriya Lifescience also said that Equally important is fostering domestic manufacturing to reduce import dependence. Extending the Production Linked Incentive (PLI) scheme and offering support to Contract Research Organisations (CROs) can bolster India’s manufacturing base.
2.Ease of doing business
While PLI scheme is one incentive, Hunt hopes are in government helping shape the environment so that there is more reduction in sort of bureaucracy and ease of doing business is always helpful,.
Addressing operational challenges, like removing Section 194R impacting marketing samples, will also streamline processes, as per Wagh
3. Prioritizing Research And Development
Furthe Prioritizing Research and Development (R&D) is essential, said Wagh. Allocating 10% of the National Research Fund to life sciences and reinstating the 200% weighted deduction for R&D expenditures will encourage cutting-edge innovation, strengthen India’s global competitiveness, and accelerate drug discovery.
Overalls Dr. Wagh, said that “The Union Budget 2025-26 arrives at a pivotal moment for the Indian pharmaceutical industry, which is striving to achieve ambitious growth targets of $120–130 billion by 2030 and $450 billion by 2047. This budget can be the catalyst to drive innovation, boost self-reliance, and transform India into a global pharma leader.
This budget is a unique opportunity to build a robust pharma ecosystem, contribute to the vision of ‘Viksit Bharat,’ and ensure India continues to innovate and lead globally.”
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
