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Budget 2012: Increase healthcare allocation by 2.5% of GDP, says Dr. Reddy’s

In the upcoming financial budget, the government should allocate 2.5% of GDP for health care sector, says Dr. Reddy’s Laboratory, India’s second largest drug manufacturer. This is the right time to incentivize and encourage the penetration of the health care reach and delivery.

Dr. Reddy's Laboratory Logo
Dr. Reddy’s Laboratory

“A good way to start would be to signal an increased allocation approaching 2.5 per cent of GDP as spending on health care with a more favorable policy environment,” Dr Reddy’s CFO Umang Vohra told PTI.

According to him, any kind of advancement in the 2% of GDP will fetch immense appreciation from the stakeholders. Looking for the prospect from pharmacy industry, Vohra said the different tax structures such as 5 per cent for formulations and 10 per cent for active pharmacy ingredients should be normalized so that the cash conversion cycle improves for most players.


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