Budget 2021 expectations: Pharma industry seeks steps to reduce dependence on API imports from China It is expected that the government will continue to focus on reduced import dependence, and encourage investments to boost R&D and capital expenditure. January 08, 2021 / 10:06 PM IST With the Union Budget for FY2022 to be presented in a few days, the pharmaceutical and API industry expects a few supportive announcements from the government that will boost growth. It is expected that the government will continue to focus on reduced import dependence, encourage investments to boost R&D, and capital expenditure. Some of the specific areas that are likely to receive attention in the Union Budget 2021 are reducing dependence on API supplies from China, providing impetus to R&D through higher tax deductions and reducing GST rates for life saving and essential drugs.