| The financial budget of India for the year 2006 | | | | Recently, several state governments such as in |
| has caused reasons to disappoint its biotech | | | | Maharashtra, Andhra Pradesh and Karnataka have |
| sector. The first shortfall was in dowsing | | | | taken proactive initiatives to promote |
| expectations on the tax structure. While currently | | | | biotechnology by implementing different |
| only costs of Indian patent filings are included in | | | | biotechnology policies. These policies focus on |
| weighted tax deductions, the biotech sector now | | | | setting up Biotech Parks, Incubators, Centers of |
| wants costs of international patent filings also to | | | | Biotech Excellence and providing fiscal incentives |
| be included. | | | | to investors. |
| The second shortfall pertains to restraining taxes | | | | A market research report named "Indian |
| on technology transfers and technology licensing | | | | Biotechnology Market Outlook (2006)" |
| on which the biotech industry relies heavily to | | | | prepared by RNCOS gives a detailed analysis of |
| launch new technologies. This dependence is more | | | | the Indian biotech market structure and conditions. |
| as world biotech companies usher advanced | | | | It also delineates the initiatives and policies of |
| medicinal and agricultural techniques into the | | | | central and state governments. |
| country. So the biotech industry wants | | | | Prior to this, the report assesses the Indian |
| exemptions on withholding taxes on these. | | | | biotechnology market for 2005 in terms of size, |
| Entrepreneurs argue that the biotech sector | | | | demand, domestic market and exports. It also |
| needs this kind of support to compete with | | | | forecasts for the same till 2010. An intensive |
| countries like China, Singapore, Korea and Eastern | | | | SWOT analysis is also covered in the report. The |
| Europe. The industry therefore hopes that its | | | | analysts discuss about the future of biotechnology |
| demand would be met by the new national | | | | in India as also how the government initiatives and |
| biotech policy that is to be announced later this | | | | resulting regulations are affecting the industry. |
| year. | | | | Finally the report lists company profiles of 20 |
| The financial budget has also disappointed the | | | | major players in biotech industry including Shantha |
| industry by not relaxing export obligations for | | | | Biotechnics, Biocon, Bharat Biotech, Wockhardt, |
| newly formed biotech companies in the biotech | | | | Serum Institute of India, Zydus Cadila, and |
| "parks" coming up in all economic | | | | Aventis Pharma. |
| zones of the country. | | | | |