With the Union Budget 2024–25 approaching, healthcare and pharmaceutical leaders await Finance Minister Nirmala Sitharaman's announcements. They advocate strategic measures to boost growth, innovation, and accessibility. The Indian pharma sector aims to reach USD 120 billion by 2030. It wants the government to promote quality, innovation, and investment in the sector.

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, stressed the importance of using the industry's global manufacturing position and knowledge-based foundation, according to media sources. Jain underlined the need for continued investment in research due to its hazards, long development timetables, and low success rates. He proposed tax incentives for research and investment in the 2024–25 budget to make India a worldwide quality leader.

This input highlights the critical importance of the diagnostics sector in India's growth and emphasises the need for enhanced public-private partnership (PPP) models to achieve better outcomes. Ameera Shah, Executive Chairperson of Metropolis Healthcare, advocates for increased funding for screening and diagnostic programmes focused on communicable diseases (NCDs), such as cancer and cardiac ailments. She also emphasises the importance of investing in the training of healthcare professionals. Shah suggests several strategies to bolster the diagnostic services sector, such as eliminating the GST on diagnostic services, simplifying the refund process for GST paid on input tax credits, lowering the customs duty on imported diagnostic equipment, and examining the high GST rates on lab supplies to stimulate investment in research and development.

The pharmaceutical industry has presented a series of recommendations to boost research and development (R&D) and foster innovation. Anil Matai, the Director General of the Organisation of Pharmaceutical Producers of India (OPPI), commends the government's efforts to improve healthcare standards but calls for policies that encourage investment in R&D. Matai suggests reducing R&D expenses, providing incentives for multinational corporations engaged in research, and granting tax concessions to corporations. He also proposes expanding the Income Tax Act to include companies solely focused on pharmaceutical R&D and suggests a 200% deduction rate for R&D expenditures. Matai highlights the importance of a robust intellectual property rights system to promote economic growth and urges pharmaceutical companies to bring innovative treatments to India.

The meeting between Finance Minister Nirmala Sitharaman and the PHD Chamber of Commerce and Industry (PHDCCI) focused on the Pre-Budget Memorandum for the 2024–25 Union Budget. The PHDCCI emphasised the need to enhance India's health infrastructure, with Dr. Deep Goel, Chair of the Health Committee at the PHDCCI, pointing out the deficiencies in public health.

A number of major global issues significantly affect healthcare, including health system reforms, demographic changes, and evolving patient experiences and expectations. Achieving a market value of $130 billion by 2030 and an astounding $450 billion by 2047 are two of the lofty targets established for the future by the Indian pharmaceutical sector. The sector is hell-bent on making innovation its top priority, expanding access to affordable healthcare, and upgrading infrastructure to sustain its meteoric rise.

The pharmaceutical sector is demanding a number of reforms, including faster medication approvals, more funding for R&D, easier access to imported materials, more focus on active pharmaceutical ingredient (API) production, more local value addition, and better talent development. Matai has proposed additional Centres of Excellence (CoEs) dedicated to rare disease research and development. In addition, there is an initiative to expand the list of essential medications that are exempt from goods and services tax and import tariffs.

Promising new rules and reforms to streamline regulations and boost innovation, the healthcare and pharmaceutical industries are looking forward to the future. In order to foster a robust and innovative pharmaceutical business in India, they are looking forward to the government's continued support and strategic efforts.

The Indian pharmaceutical industry, widely regarded as a global leader, excels in the production of generic medications and affordable vaccines. This organisation has established itself as a frontrunner in the sector because of its massive output and worldwide presence. More than 200 nations highly desire its goods, with the American market significantly contributing to its prosperity. Both the industry's resilience and its expansion have been on full display during the last several years.

From April 2023 to January 2024, the value of India's drug and pharmaceutical exports reached a remarkable US$22.51 billion, highlighting the country's substantial influence on the international stage. The pharmaceutical sector has demonstrated extraordinary resiliency and a talent for discovering innovative solutions in the face of multiple global issues, including fluctuating demand for COVID-19 drugs.

Speaking to Drug Today Medical Times, Deepak Pahwa, Director, Delair, said, "The pharmaceutical industry is optimistic about the upcoming budget, especially following the government's implementation of enhanced quality control measures like Good Manufacturing Practices and revised Schedule M.”

“With the Indian pharma sector making significant strides globally, increased budget allocation can bolster our international standing,” he added.

“We anticipate initiatives incentivizing R&D to support the local manufacturing of high-quality pharma products. Additionally, PLI schemes could greatly assist in establishing advanced manufacturing facilities and integrating cutting-edge technologies and machinery. These steps are vital for promoting innovation and sustainable growth within the industry," he further added.

One remarkable achievement is the rapid development of domestic COVID vaccines in collaboration with prestigious Indian research institutes, including the National Institute of Virology and the Indian Council of Medical Research. This accomplishment demonstrates that India can deliver cutting-edge solutions on par with industrialised nations. India has proven its mettle by delivering 301 million doses of vaccination to more than 100 countries.

We anticipate a 9–11% increase in the industry in the fiscal year 2024. The Indian pharma market grew over 5% in FY23 to US$ 49.78 billion. Strong domestic consumption and international demand drove the sector's outstanding 6-8% CAGR from FY18 to FY23.

The sector is growing due to generics, OTC medicines, APIs, vaccines, and biologics. As the government sets high goals, the sector will rise globally. Experts predict that the market will reach US$65 billion by 2024 and US$130 billion by 2030. The fact that India accounts for 57% of WHO's prequalified API list reinforces its role in global healthcare supply chains.

The pharmaceutical business continues to attract international investment due to India's critical role in supplying essential drugs worldwide. Indian pharmaceuticals are resilient and leaders in improving world health through innovation and accessibility. With its growing capabilities and market reach, it makes substantial field progress.