Overall, a welcome budget, but a GST waiver on lifesaving drugs would have been ideal: Kiran Mazumdar-Shaw

The waiver of basic customs duty for many life-saving drugs for cancer, rare diseases and chronic diseases announced in the Union Budget is an important step towards reducing the cost of treatment for patients and is a welcome move. However, in order to truly benefit patients on a large-scale, exemption of GST on such drugs is critical. I am disappointed that this aspect has been overlooked and only imported drugs have been exempted from customs duty.

The GST exemption on indigenously developed drugs both for cancer and chronic diseases, is essential to reduce the cost burden on the patients. FM’s intent to give relief to patients will be realised more with GST exemption and will make a huge impact, considering that in India 80% of healthcare expenses are out of pocket.

I welcome the Finance Minister’s announcement of Rs 20,000 crore as an outlay for private sector research and development. Innovation is an important aspect of India’s value-creation journey, and I think we really need to move our focus from volume to value creation led by Intellectual Property (IP). And if the Innovation Fund is going to help the healthcare industry do that, we will be in a good place.

I was particularly impressed with the proposal of the Nuclear Energy Mission for research and development of small modular reactors and involving the private sector in it. I think that’s very innovative and interesting.                                                                           

Additionally, the significant personal income tax relief, with no tax payable up to ₹12 lakh, will put more money in the hands of the people and boost domestic consumption, which is good for the economy. Overall a positive budget.

—The author, Kiran Mazumdar-Shaw, is Executive Chairperson & Founder of Biocon Ltd and Biocon Biologics Ltd. The views are personal.