News

Indian Pharma Urges Government for Stronger R&D Support and Regulatory Reforms Ahead of Budget 2026

The pharmaceutical sector aims to achieve revenues of USD 120–130 billion by 2030 and ultimately expand to USD 450 billion by 2047, Jain noted, underscoring the long-term growth potential if supportive policy measures are adopted.

• By Newsdesk
• New Delhi
• Jan 12, 2026

News

As India prepares for the Union Budget 2026-27, leaders of the domestic pharmaceutical industry have made a strong appeal to policymakers for enhanced research incentives and a simplified regulatory environment to drive innovation and global competitiveness.

Industry bodies, including the Indian Pharmaceutical Alliance (IPA) and the Organisation of Pharmaceutical Producers of India (OPPI), have outlined key expectations, saying that strategic fiscal support this year could help the sector evolve from a largely volume-driven industry to an innovation-led powerhouse. 

According to IPA Secretary General Sudarshan Jain, the industry is seeking globally competitive R&D incentives that would bolster India’s scientific ecosystem and encourage higher investment in novel therapies, complex generics, bio-similars and vaccines. Jain also emphasised the need to restore the weighted R&D tax deduction to 200%, a benefit that could significantly boost drug development efforts. 

The pharmaceutical sector aims to achieve revenues of USD 120–130 billion by 2030 and ultimately expand to USD 450 billion by 2047, Jain noted, underscoring the long-term growth potential if supportive policy measures are adopted. 

Calls for Tax and GST Rationalisation

Beyond research incentives, stakeholders have urged rationalisation of the Goods and Services Tax (GST) framework to ease cost pressures in manufacturing and distribution. Among the suggestions are clearer rules on input tax credits and addressing the inverted duty structure that has been a concern for domestic producers.

OPPI Director General Anil Matai highlighted the need for targeted customs duty relief on essential raw materials and advanced manufacturing inputs, which could improve affordability and foster investment in high-end drug production. Additionally, both bodies believe that consistent GST norms for medicines and medical products would support cost efficiency and help expand access for patients nationwide. 

Simplifying Regulations to Attract Investment

Another major industry demand centres on regulatory simplification. Currently, multiple licences and compliance requirements across agencies can create procedural delays. Deloitte India partner Joydeep Ghosh has recommended the formation of a single regulatory authority for pharmaceuticals and medical devices to streamline processes, promote ease of doing business, and attract greater investment into the sector. 

Strengthening India’s Healthcare Ecosystem

Industry voices have also called on the government to increase overall healthcare spending to meet the National Health Policy target of 2.5% of GDP, saying broader public investment will benefit the entire care continuum, from preventive health to cutting-edge research. 

As the budget horizon approaches, these recommendations reflect the sector’s push for policy support that balances innovation, manufacturing strength and global competitiveness. Analysts say the final budget could play a pivotal role in defining India’s future as not just the “pharmacy of the world” but a hub for high-impact pharmaceutical innovation.

(Source: PTI)