Increased R&D Incentives: To stimulate innovation, the government plans to provide substantial deductions on R&D expenses, including a proposed 200% deduction rate for companies engaged in pharmaceutical research and development. This is aimed at enhancing India's capacity for essential research, including clinical trials and patent registration.

Production-Linked Incentive (PLI) Scheme: The budget has increased the allocation to the PLI scheme, which aims to promote domestic manufacturing of pharmaceuticals. This is part of a broader strategy to reduce dependency on imports for active pharmaceutical ingredients (APIs) and key starting materials.

Healthcare Infrastructure Investment: Significant funds have been allocated to improve healthcare infrastructure, including the establishment of new medical colleges and the upgrading of existing facilities. This is expected to enhance the overall healthcare delivery system and support the pharmaceutical sector indirectly by increasing the demand for medical supplies and drugs.

Enhanced Intellectual Property (IP) Regime: There is a strong focus on strengthening the IP framework to incentivize pharmaceutical companies to invest in groundbreaking research and development. A robust IP system is seen as crucial for the discovery of new life-saving drugs and for maintaining India’s competitive edge in the global market.

Support for Biotechnology: The budget has also increased funding for biotechnology research and development, demonstrating a commitment to fostering innovation in the life sciences sector. This includes initiatives to support sustainable manufacturing practices and the development of bio-pharmaceuticals.

These initiatives are part of the government's broader strategy to position India as a leading player in the global pharmaceutical market, aiming to increase the sector's market size significantly in the coming years.

Increased Capital Investment: Continuing from the previous budget, there is a significant focus on capital investments in infrastructure. This aims to enhance logistics and reduce costs, thereby benefiting the manufacturing sector directly.

Supply Chain Improvements: Measures to strengthen supply chains, including investments in logistics infrastructure, are anticipated. This is part of the broader strategy to establish India as a leading global manufacturing hub.

Corporate Tax Incentives: Potential adjustments to the corporate tax rate for new manufacturing units are on the agenda. This reduction is aimed at stimulating industrial growth and attracting more investments into the manufacturing sector.

Technology and Innovation Support: The budget emphasizes support for digital infrastructure, AI, and other emerging technologies, which are crucial for modern manufacturing processes. Investments in these areas aim to enhance efficiency and productivity in the sector.