Nilesh Patel, Managing Director of Kashmik Formulation, has highlighted key expectations from the Union Budget 2025, focusing on challenges faced by the pharmaceutical manufacturing sector, particularly small and medium enterprises (SMEs).
“As we look toward the upcoming Union Budget, we believe it is an opportunity to address key challenges affecting the pharmaceutical manufacturing sector, especially SMEs,” Patel stated. He emphasized concerns such as financial pressure from unutilized Input Tax Credit and the need for additional support to meet the revised Good Manufacturing Practices (GMP) deadline of December 2025.
Patel also pointed out that the recent RBI interest rate of 11% has increased cost pressures on the sector. “We believe steps to ease this burden would provide much-needed relief,” he added. Additionally, he urged the government to revise contract manufacturing rates under the Drugs (Prices Control) Order (DPCO), which have remained unchanged since 2011, to help the industry manage inflation and ensure sustainable growth.
Acknowledging the government’s initiatives from last year, such as the Ayushman Bharat Digital Mission and integrated health labs in rural areas, Patel expressed optimism about further measures in this year’s budget to bolster healthcare infrastructure and foster growth in the pharmaceutical sector.
The industry awaits policy support in the Union Budget 2025 to strengthen its contribution to India’s healthcare goals while addressing pressing challenges.
