BANGALORE: The Association of Biotechnology Led Enterprises (ABLE), Bangalore, welcomed the budget measures which would give the much needed support to sustain their growth momentum.
K. K. Narayanan, President of ABLE, said "measures such as extending the weighted average tax exemption on R&D investment, service tax exemption for technology business incubators and direct tax benefits to venture capitalists (VCs) investing in biotech and related sectors such as nanotechnology, seed research and drug discovery will support innovation in this sector". But there existed a serious anomaly in regard to imported and indigenous life saving drugs and diagnostics, he said. The recommendation of the biotech industry to exempt from excise and customs duties components and raw materials remained unaddressed. Removal of service tax on clinical research services would help the Indian biotech industry become more competitive, he said.
Kiran Mazumdar Shaw, CMD, Biocon, said, "By passing on tax benefits to VCs investing in biotech, the FM has created a positive entrepreneurial environment".