Indian pharmaceutical companies have urged Union Finance Minister P Chidambaram to extend export-related tax benefits and strengthen incentives for research and development in the General Budget 2008. 

Pharmaceutical companies have urged Union Finance Minister P Chidambaram to extend export-related tax benefits and strengthen incentives for research and development in the General Budget 2008.

According to estimates, revenues and profits of drug companies have plunged because of increasing pricing pressure and competition in important Western markets. A firmer rupee has also added to the problem.

On an average Indian companies earn 50 per cent to 80 per cent revenue from exports, which is very unlikely in present situation. The companies are hiving off their R and D units into separate companies to raise capital and reduce innovation-related risks. However, companies in the country have very limited pipeline and in that too, most of companies are in early stages of development.