Business Today

Big fillip to economy, but disappointing for pharma

The budget has more or less been in line with the deficit target, thanks to the oil prices and that is another positive from the budget.

Murtaza Khorakiwala        Last Updated: February 29, 2016  | 21:07 IST
Murtaza Khorakiwala, Managing Director, Wockhardt
Murtaza Khorakiwala, Managing Director, Wockhardt

It is big fillip to the economy as the budget focuses more on boosting the rural economy, especially in the backdrop of two consecutive monsoon failure in the past two years.

Through the various schemes, about Rs 1 lakh crore is going to the rural areas and this will spur the rural economy growth story

The budget has more or less been in line with the deficit target, thanks to the oil prices and that is another positive from the budget.

HIGHLIGHTS:Union Budget 2016

However, allocation of Rs 25,000 crore to recapitalise stressed assets of banks is inadequate, as their burden is over Rs 3-4 lakh crore.

Similarly, decision to bring down and rationalise 1,500-plus Central schemes to about 300 will help better execution and monitoring.

From the pharma and healthcare point of view, there is nothing to cheer, except the new health insurance scheme for the BPL families, which will extend healthcare to poorest of the poor. It is a setback for research-based drug companies as weighed deduction on R&D has been brought down from 200 per cent to 150 per cent.

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