PwC India wants the new BJP-led government to give a boost to the pharmaceutical and biotech industry in India. The sector is brimming with capability in generic drug production and research prowess. From drug manufacturing to contract research and production and clinical trials, the industry has seen the worst slowdown. Despite this, the sector has generated revenues to the tune of $21 billion and expected to clock total sales of US$ 27 billion by 2016.

The management and consultancy firm does expect some quick steps to address concerns on this front, particularly for international investors, who have been particularly badly impacted by a very aggressive approach, and equally aggressive interpretations. In addition, the manifesto makes reference to the need to deal with a tax policy roadmap, and there is also a reference to bringing on board all state governments in adopting good and services tax (GST). The thrust on jobs, focus on boosting manufacturing, stress on technology enabled governance, and tackling inflation are strong pointers in terms of what one would expect, at least in terms of a policy direction.

Foreign direct investment (FDI) into the Indian pharmaceutical sector has more than doubled during the April-December 2013 period in this fiscal at US$ 1.26 billion. FDI in the drugs and pharmaceutical sector stood at US$ 589 million in the corresponding period last fiscal, according to the data from the Department of Industrial Policy and Promotion (DIPP).

According to Sujay Shetty, leader pharma & life sciences, PwC India said, "We would like the new government to encourage manufacturing, encourage research and development and innovation. We would like the government to accelerate health insurance and government spend so that India can move rapidly away from out of pocket market which inhibits the size of market.

"With the stable Government now a certainty, it is anticipated that they would work towards re-igniting the investment cycle which is critical for revival of growth in the manufacturing sector in India - combined with a stable and non-disruptive fiscal regime, this could once again get India into focus amongst global equity and strategic investors", stated Sanjeev Krishan, leader private equity, PwC India

Stated Ketan Dalal, joint tax leader, PwC India, "The decisive mandate in favour of the BJP will, after many years, give us a government which would not be buffeted by the pulls and pushes of a coalition government. Obviously, business finds it far easier to function in a stable environment, and just the fact of a stable government has favorably impacted sentiment; of course, it will take time for changes to translate on the ground, but one is hopeful that there will be low hanging fruits which the government is likely to deal with quickly, so as to send the right signals”.