Budget 2024: Biocon's Kiran Mazumdar-Shaw Positive On Budget, Stresses GST Rationalisation

Kiran Mazumdar-Shaw has lauded the government's plans to invest in research and innovation in various sectors, as shown in the Budget 2024 presented on Tuesday.

"I've always been crying for investment in research and innovation. So I'm happy the government made a serious plug for innovation in the area, not only in agriculture but in many other sectors," the founder and executive chairperson of Biocon Ltd. said.

It remains to be seen how much of the Rs 1 lakh crore allocation for private enterprise-driven research and innovation would come to the pharmaceutical sector and whether it would be through grants or incentives, she said.

However, duty reforms on cancer drugs are inadequate, according to her. "As far as the duty exemption on the two cancer drugs is concerned, I think that's just symbolism."

She would like to see goods and services tax exemptions on all cancer drugs and all cancer diagnostics. "That is what will really reduce out-of-pocket expenses for patients because these are expensive treatments and we need to focus on affordability."

Mazumdar-Shaw expressed positive sentiments on the internship scheme for employment in the union budget, saying that focusing on skilling and skill development via internships is the right approach, and the budget is concentrating on employability and jobs for the future.

"It's a win-win to marry government subsidies with internships with corporate social responsibility," she said.

In terms of subsidies for new employees for the Employees' Provident Fund Organisation, she said she didn't subscribe to it as much as she subscribed to the internship programme.

There are a large number of manufacturing opportunities that the country is trying to address, which requires a large skill force, she said. "If you use the internship programme to skill your manufacturing labour force, there is a good chance of getting a lot of that manufacturing coming our way."

She would like to see PLI scheme increasing in allocation in the new budget because there is a need for capital employment by industry.

She would also like to see 15% corporate tax rate incentives apply to both greenfield and brownfield projects.

"I think in brownfield projects, they're trying to upgrade and modernise their facilities, which will also need the tax incentive," she said.

Overall, the budget signalled very positively that the government wants to focus on certain economic drivers like jobs, climate initiatives, green technologies, cutting-edge future technologies and research and innovation, Mazumdar-Shaw said.

She said her only reservation with the budget was not hearing enough about GST rationalisations, stating that maybe that is something they will have to wait for.