Industry leaders have urged the government to create a structured funding framework to deepen innovation and research and development (R&D) in the pharmaceutical and MedTech sectors, ahead of the Union Budget 2026, saying these industries are critical to achieving the vision of Viksit Bharat.

As India’s pharmaceutical sector transitions from volume-led growth to a value-driven model, stronger alignment between science, policy and industry is essential, Dr Reddy’s Laboratories Chairman Satish Reddy said. He noted that with ambitions to grow into a USD 500 billion industry by 2047, sustained financing and a supportive innovation ecosystem are vital to translate advanced research into high-value therapies and improve patient access.

Echoing similar concerns, Poly Medicure Managing Director Himanshu Baid said India needs a policy framework that reduces cost disadvantages, promotes indigenous innovation and ensures faster market access for MedTech products. He suggested a dedicated Rs 1,000-crore MedTech R&D and clinical validation fund to support local product development and global competitiveness. Baid also highlighted challenges arising from the inverted duty structure under GST, which is increasing working-capital pressure on manufacturers.

ZEISS India CFO Dhaval Radia stressed the need for further rationalisation of customs duties in healthcare and precision manufacturing to improve cost competitiveness and enable long-term investment planning.

Philips India Head of Finance Dev Tripathy said India must build a sustainable MedTech manufacturing ecosystem to emerge as a medical device export hub. He emphasised incentives for AI-driven innovation, job creation and high-end service exports through Global Capability Centres.

Apollo Hospitals’ Shobana Kamineni called for a prevention-first healthcare system, driven by digitised records and data portability, to ensure a healthy workforce by 2047. Rainbow Children’s Medicare Chairman Ramesh Kancharla urged greater budgetary focus on children’s health, including tax deductions for essential diagnostics, to promote early intervention and long-term well-being.