Pharma Companies Feel Sick

The Budget has fallen way short of expectations. Ranjit Shahani, V-C and MD, Novartis said: "This budget lacks focus, especially for the pharma. We were expecting a reduction in excise duty from 16% to 8%, which has not come about." Industry majors said "the fine print appears worse" and they might "have to go back again to the government with folded hands." Indian pharma firms possess world-class research facilities and needed to be encouraged to reinvest their research-related earnings into future research activities. The budget, however, has ensured pharma firms investing in R&D have been left out in the cold.