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New Delhi, Feb. 28: The druid has concocted a growth potion for pharmaceutical and biotech industries ? but the mavens in the sector are disappointed as they were looking for something more potent.
?The government has given an extension of only two years for the 150 per cent weighted deduction on expenditure on research and development (R&D). This should have been extended for at least 10-15 years,? said Malvinder Mohan Singh, president pharmaceuticals, Ranbaxy Laboratories Limited (RLL).
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Most pharmaceutical companies feel that with the introduction of the product patent regime from January 1, the pharmaceutical companies need to aggressively go into R&D. But most feel the government has taken a short-term view of the R&D process. ?Most pharmaceutical research requires years to fruitfully do research on a particular product,? said Singh.
D. S. Brar, director of GVK Biosciences, said, ?The budget is growth-oriented. To develop the pharmaceutical and biotech sectors, I think these should be given the same kind of facilities as the IT sector.?
Rajiv Gulati, managing director of Eli Lilly & Co (India), said while the excise duty had been retained at 16 per cent, the abatement rate of 40 per cent was not sufficient.