Effects of budget 2021 on Pharmaceutical Industry.

The busiest people on the planet in the year 2020 were l the doctors and the industry which was dealing with tremendous amount of pressure was the Pharmaceutical industry. Earlier in India the budget allotted for the Pharmaceutical industry was huge compared to other developing counties. Despite having a comfortable budget it was quite hard for the people to cope-up with the outbreak. The governments were forced to ask people for collection in the name of emergency. Though it was not a forced decision on the public but it was a good initiative. This proved to be very effective in maintaining and controlling the number of cases of Coronavirus.

Amid the corona virus outbreak it was quite clear that the budget was going to focus on rebuilding the economy and the pharmaceutical industry will be one of the main pillars in rebuilding the structure of the country. Indian Finance minister Mrs. Nirmala Sitaraman, along with Health ministry presented a budget which not only focused on the development of the nation but also targeted to improve the health of this country. India now being on the major attraction for major companies around the world, will now be focusing on the pharmaceutical industry and decrease the dependency on the neighbouring country China.

What are the key elements in the Budget of 2021 that are profitable and focused on developing the Pharmaceutical industry
The first budget session in India after Pandemic is out and looking at the numbers it can be said that nearly a huge boost around 200% can be seen in the Pharmaceutical sector of the country. ‘Pharmacy of the world’ is something that was stated by the minister in the parliament which means that the import and export is going to increase tremendously. The production rate is going to be up and so will be the demand of the medicines around the world.

On an instant to know the difference between the last year’s budget and this year’s budget.

⦁ Budget 2020-2021 has a total number of 42.05 crore for the pharmaceutical sector. Whereas this year’s budget presented, stated that a total sum of 124.42 crore has been allotted for the development of the pharmaceutical industry alone. A much needed push for a developing pharmaceutical industry was needed and the government has focused on that.
⦁ India’s spending on the healthcare sector was quite low in the last few years. But this year there was a good initiative which was presented by the Finance ministry which will help the government and the country to improve the health care of the people of the country and be ready for any future pandemic outbreaks which was seen last year.

India’s health care profile of the last year was quite harsh on the health care industry. A total of 1.28 per cent of the country’s GDP was used. WHO on the other hand recommends the countries to spend 4-5 per cent of the GDP on the Health care sector! This sudden increase in the budget, with the current government’s vision of making this country ‘Pharmacy of the world’ will surely help the industry to grow and to flourish in a proper way. Though this also comes with its own drawbacks, which means the corruption between the pages should be gone to see a good developing and a perfect industry. However, with this budget there is obviously going to be a huge effect on the industry and it is only going to go up.

This budget has not stated or hinted towards any negative sides on the Pharmaceutical industry. The doubling of the outlay to Rs. 2,23,846 crore says a lot about the development in the health care sector and also the pharmaceutical industry. Though a part of the budget is allocated in the development of the Covid-19 vaccine. More than Rs 35,000 crore has been allotted to the development of vaccine and more than Rs 64,000 Crore allocated to strengthen the country’s primary, secondary and tertiary health infrastructure.

Moreover, this proposal was also accepted by the finest people in the industry. Sharad Tyagi, president of The Organisation of Pharmaceutical Producers of India (OPPI) has this to say about the Budget, ‘Healthcare allocation as percentage of GDP dismal; many good measures’.
With Atmanirbhar Bharat Yojana being into action by the current officials and the government it can also be said that this budget was a step in making India self-sufficient. ‘We are encouraged with Government’s renewed focus on preventive and curative health’– Rehan A Khan, Managing Director- India Region, MSD stated that this budget will encourage the people working in the industry to work more efficiently and make more advancement in the areas of healthcare and Pharmaceutical..