Enhanced tax sops for R&D, easier access to export credit high on pharma sector Budget wish list

Policy continuity on the production-linked incentive-led manufacturing as well as measures aimed at self reliance on active pharmaceutical ingredients (API) front and those enhancing export competitiveness figure in the Budget expectations of the pharmaceutical sector.

While schemes such as PLI and promotion of research and innovation in pharma medtech sector (PRIP) have laid a strong foundation, the next phase must focus on scale, execution and global cost competitiveness, Pharmexcil vice chairperson Bhavin Mehta said. Union Budget 2026-27 will be presented by Finance Minister Nirmala Sitharaman on February 1.

Rationalisation of import tariffs on critical raw materials coupled with targeted incentives for value-added formulations and APIs will be crucial to offset rising input and compliance costs. “We also see a strong case for enhanced tax incentives for research and development, faster depreciation benefits for quality and compliance investments and easier access to export credit for pharma manufacturers,” said Mr. Mehta, who is whole time director of Kilitch Drugs.

A Budget that strengthens PLI outcomes, supports green and compliant manufacturing and aligns trade policy with India’s healthcare diplomacy will help the sector move decisively towards the $120–130 billion ambition by 2030 and reinforce India’s position as the Pharmacy of the World, he said in a release.