Express Pharma

#SuperBudget: Rs 150 cr too little for innovation fund: Satish Reddy

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Commenting on the 2015 Union budget presented by Finance Minister Arun Jaitely today, Satish Reddy, Chairman of Dr Reddy’s Laboratories, complimented the FM on presenting an outstanding budget, whose direction, he feels, has set the stage for growth in the medium to long term.

Reddy says ”The budget is a clear one, with a focused growth trajectory for the next 3-4 years, broadly in line with the expectations of India Inc. The significant outlays on infrastructure of Rs. 70,000 crores and power projects that will provide a much needed additional 4k MW, are steps in the right direction towards revitalising the investment climate in the economy.”

Reacting to the revision in the corporate tax structure, he opines “while I believe this lays out a path for an easier and simplified tax administration in terms of exemptions being rationalised, we will need to see what the fine print entails on this front”.

Reddy goes on to say “The announcement to implement the GST regime from April 2016 is a good step, which is long overdue. The reduction in the inverted customs duty structure of 22 items will help the Make in India initiative of PM Modi and is another positive step in the right direction.”

Reddy is also of the opinion that the introduction of a bankruptcy law, on the lines of globally accepted norms, will go a long way to streamline business processes and loopholes, which is what India needs.

However, one of the disappointing aspects of an otherwise good budget, was, in his view, the grossly inadequate outlay of just  Rs. 150 crores on a fund that was announced to fuel innovation. He feels that a much more could have been done in this area, especially from a pharma industry perspective, so as to really propel India’s healthcare to a whole new level.

Overall, Reddy is of the view that this budget provides a lot of clarity and much needed direction and will serve well in setting the agenda for positive growth and ease of doing business.

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