India Biotech Disappointed: Not Enough Tax Incentives
By James Marriot
The financial budget of India for the year 2006 has caused reasons to disappoint its biotech sector. The first shortfall was in dowsing expectations on the tax structure. While currently only costs of Indian patent filings are included in weighted tax deductions, the biotech sector now wants costs of international patent filings also to be included.
The second shortfall pertains to restraining taxes on technology transfers and technology licensing on which the biotech industry relies heavily to launch new technologies. This dependence is more as world biotech companies usher advanced medicinal and agricultural techniques into the country. So the biotech industry wants exemptions on withholding taxes on these.
Entrepreneurs argue that the biotech sector needs this kind of support to compete with countries like China, Singapore, Korea and Eastern Europe. The industry therefore hopes that its demand would be met by the new national biotech policy that is to be announced later this year.
The financial budget has also disappointed the industry by not relaxing export obligations for newly formed biotech companies in the biotech "parks" coming up in all economic zones of the country.
Recently, several state governments such as in Maharashtra, Andhra Pradesh and Karnataka have taken proactive initiatives to promote biotechnology by implementing different biotechnology policies. These policies focus on setting up Biotech Parks, Incubators, Centers of Biotech Excellence and providing fiscal incentives to investors.
A market research report named "Indian Biotechnology Market Outlook (2006)" prepared by RNCOS gives a detailed analysis of the Indian biotech market structure and conditions. It also delineates the initiatives and policies of central and state governments.
Prior to this, the report assesses the Indian biotechnology market for 2005 in terms of size, demand, domestic market and exports. It also forecasts for the same till 2010. An intensive SWOT analysis is also covered in the report. The analysts discuss about the future of biotechnology in India as also how the government initiatives and resulting regulations are affecting the industry.
Finally the report lists company profiles of 20 major players in biotech industry including Shantha Biotechnics, Biocon, Bharat Biotech, Wockhardt, Serum Institute of India, Zydus Cadila, and Aventis Pharma.
To purchase your copy: http://www.rncos.com/Report/Biotech14.htm
For more information please visit www.rncos.com
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| Some other articles by James Marriot|