Tuesday, March 1, 2011

IMPACT OF BUDGET ON INDIAN PHARMACEUTICAL SECTOR

The Budget-2012,  has been a mild one. There were no new major annoucements that can retarde or accelerate growth for any specific sector.  Even for the pharmaceutical sector, there have been no major positives/negatives.  A couple of announcements that should impact the industry are :

The governemnt has annouced MAT for units in SEZ.  This should impact API companies having presence in SEZ.  The bigger API companies having presence in SEZ are Biocon, Ranbaxy and Cipla.

Excise duty increased to 5% from 4% - This  is not significant, but should effect API companies, which have to deal with cost pressure day in and day out.