01 Feb Pharma stocks in focus after medicine tariff changes in Union Budget 2025
Sitharaman stated that the government has taken steps to improve access to critical medicines by adding six life-saving drugs to the concessional 5% duty slab. Furthermore, full exemption and concessional duty will now apply to certain bulk drugs.
Additionally, in a move to reduce costs for patients, customs duties will be eliminated on 36 additional life-saving drugs.
These medicines also include the medication given to cancer patients, thereby reducing the monetary burden on them and making these drugs more affordable for them.
This update is likely to affect drug manufacturers like Aarti Drugs, Cipla, Abbott India, Ajanta Pharma, Akum Drugs & Pharmaceuticals, Alkem Laboratories, Astrazeneca Pharma, Biocon, Lupin and Dr. Lal Path Laboratories among others.
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“Our economy is the fastest-growing among all major global economies. Our development track record of the past 10 years and structural reforms have drawn global attention. Confidence in India’s capability and potential has only grown in this period. We see the next five years as a unique opportunity to realize ‘Sabka Vikas’,” quoted the finance minister while presenting the Union Budget 2025.
The Union Budget 2025 was the second full budget of Modi 3.0 and there were expectations of increased focus on agriculture while balancing between fiscal consolidation and economic growth.
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