Purvi Shah, Deputy Vice
President – Fundamental Research, Kotak Securities Ltd:-
Budget 2023-24 announced 3 key
proposals for the pharma & healthcare sector. One of the proposals has positive
implications while the other two can be interpreted as marginally positive.
Proposals and their implications
are as follows:
- Allocation for the development of the pharma industry has
been increased from Rs100 cr in FY23E to Rs1250 cr in FY24E – the impact of
this will be that there will be new programs to promote pharma R&D
through centers of excellence. However, we would await clarity on where
exactly these additional funds are going to be used. - Facilities in select ICMR (Indian Council of
Medical Research) labs will be made available for research by the public and
private medical faculties and private sector R&D teams for
collaborative research – Marginally positive for pharma companies,
especially CROs (Contract Research Organizations), given better collaboration
and access. - 147 new nursing colleges will be established,
which will be co-located with the existing 147 medical colleges, which have
been established since CY14 – this will ensure a better supply of
nursing staff for hospitals as they expand further.