Indian govt views fiscal aid for pharma

In India, the Prime Minister's Office has established an ad hoccommittee of senior civil servants and industry representatives to make recommendations concerning financial aid for the country's pharmaceutical industry, reports the Marketletter's New Delhi correspondent.

Proposals discussed at the first meeting of the panel, which is headed by Finance Ministry Secretary Ajit Kumar, included weighted deductions for R&D expenditures, exemption of income from research-based products covered by intellectual property rights and increasing the excise duty exemption from three years to 10 for new research-based products developed by Indian companies, according to industry sources.

The committee's recommendations are expected to play an important role in deciding budgetary provisions for the industry, say the sources. Finance Minister Yashwant Sinha is to present the federal budget (April 1, 2001-March 31, 2002) in Parliament on February 28.