As India’s pharmaceutical sector anticipates the upcoming Union Budget, Mridul Dhanuka, Director of Orchid Pharma, outlined a series of strategic measures that could enhance the industry's growth and global competitiveness.

Dhanuka emphasized the importance of expanding the Production Linked Incentive (PLI) scheme to include investments in Active Pharmaceutical Ingredients (APIs) that depend on imported starting materials and critical raw materials. “This step would significantly bolster India’s self-reliance in a sector critical to public health and economic resilience,” he said.

Another priority area is incentivizing research and development (R&D). Dhanuka suggested success-based fee support to promote research into cost-efficient processes, green manufacturing, and innovative drug development. “Such incentives are vital for ensuring the sector's long-term sustainability,” he noted.

Streamlining compliance through a single-window reporting mechanism also emerged as a key recommendation. Simplified compliance processes, Dhanuka argued, would improve operational efficiency and enhance the overall ease of doing business for pharmaceutical manufacturers.

On infrastructure, Dhanuka highlighted the need for investments in pharma parks equipped with centralized utilities like power, water, steam, and effluent treatment plant (ETP) services. These shared resources, which can account for up to 60% of setup costs, would significantly reduce project expenditures and encourage new investments.

Tax reforms also took center stage in Dhanuka’s recommendations. He advocated for lowering corporate income tax rates to improve the global competitiveness of Indian manufacturers and attract further investments into the sector.

Lastly, Dhanuka called for increased export support, particularly for micro, small, and medium enterprises (MSMEs) seeking entry into regulated international markets. He proposed reimbursement of USFDA and other regulatory inspection fees, contingent on successful inspections and meeting export benchmarks. “This approach would motivate more players to establish world-class facilities, boosting exports and strengthening India’s position in the global pharmaceutical landscape,” he said.

With these targeted measures, the government could provide the necessary support to drive growth, innovation, and global competitiveness in the pharmaceutical industry, positioning India as a leader in healthcare solutions.