Pharma Companies Harbor a Huge Expectation From Chidambaram’s Budget
Starting virtually from scratch, the pharmaceutical industry in India has over the last 30 years evolved into a world leader in producing high quality
drugs with the lowest cost of production, and now is ranked fourth globally in terms of volume and 13th in terms of value of production.
Despite having emerged as one of the major sectors of Indian economy, pharmaceuticals is still described as a sunrise industry.
‘If the medicine excise duty is removed 100 percent from all the medicines that will be the biggest benefit to Indian communities and Indian people will remember P.Chidambaram forever. My second request to the finance minister is to give adamant upto 60 percent instead of 42.5 percent. If the government is sincere and looking for the benefit for pharma industries they are very much in trouble the excise duty abetment should be free from 42.5 to 60 percent and pharma industries can survive,’said Dipak Padiya, Managing Director, Osho Pharma Private, Limited.
The industry claims that the reduction of excise duty by half (from 16 to 8 percent) would facilitate availability of cheaper medicines in the market.
The pharma sector in Gujarat believes that the pattern in Jammu and Kashmir, Himachal Pradesh and Sikkim are more convenient than in Gujarat. The small-scale pharma units are demanding to increase abatement to 45 percent to compensate the higher excise duty, as the industry has to pay on tax included in maximum retail price (MRP).
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