Budget 2017 - Pharma Sector

Why in news?

The government announced amendment in rules to promote the use of generic drugs while outlining steps to improve the healthcare.

What budget announcement says?

• In the budget the government proposes to amend the Drug and Cosmetic Rules to ensure availability of drugs at reasonable prices and promote the use of generic medicines.
• New rules for regulating medical devices will also be formulated to attract investments.
• As per the government, this move will reduce cost of such devices.

How Pharma industry reacts?

• The Pharma industry experts believe the government is considering norms to make prescription of generic drugs mandatory.
• Typically, doctors prescribe branded products to their patients and there is a view within the government that the cost of healthcare could be reduced by promoting generic medicines.
• The industry, however, is not enthused with the idea and feels this will be difficult to implement.
• Earlier the government in its drug policy in 1978 had proposed abolition of brand names in respect of five drugs including analgin and aspirin but the same was successfully challenged by manufacturers in the court.
• The Pharma experts expect some pro-pharma industry measures in terms of incentives to research, active pharmaceutical ingredients and some tax relief.
• The life sciences sector had great expectations from the budget not only from a fiscal incentives perspective but also from a regulatory angle; more so, given the government’s vision of making India one of the top-three pharmaceutical markets by 2020.
• However, this year, too, no specific impetus was given to the sector.

Category: Mains | GS – III | Economy

Source: Business Standard