Every sector has many expectations from the Union Budget. A pre-Budget survey shows a growing demand for making investments in the pharmaceutical industry more attractive. According to the Grant Thornton India Survey, most of the people surveyed said that the government should increase spending in the PLI scheme with a focus on bio-pharmaceuticals and medical devices, PTI reported. The industry expects (Budget 2022) that innovation and research and development (R&D) will be the key investment drivers, said the survey report.
Pharmaceutical products expected to be included in ‘RODTEP’
According to the news, restoration of higher percentage of deduction under Section 35(2AB) of the Income Tax Act, 1961 will encourage research and development and innovation. Notably, 85 per cent of the respondents expect a higher percentage of deduction under section 35(2AB) of the Income Tax Act, 1961 to be reinstated for R&D expenditure. In addition, 81 per cent expect pharmaceutical products to be included in the ‘RODTEP’ scheme.