The bio-tech industry cheered Finance Minister Jaswant Singh's announcement that the sector would enjoy the tax incentives accorded to the pharmaceutical and information technology sectors.

The CII National Task Force on Biotechnology chairperson and Biocon India managing director, Kiran Mazumdar Shaw said the industry's expectations have been met in the Budget with BT recognised as a sector by the finance minister.

"For the first time, BT has been given priority in the Budget," Mazumdar told reporters in Bangalore.

She said the removal of restriction of exports of upto Rs 20 crore (Rs 200 million) and the increase in import of equipment to 25 per cent from one per cent of the export value would boost research and development in the sector.

Mazumdar said the Budget has supported R&D activities in Biotech and the health sector by reducing the import duty on crucial capital intensive equipment for R&D.

She said the finance minister had acknowledged in his speech, "R&D was a big opportunity for India" in the biotech area.

Shaw said the proposals will boost investor confidence in the BT sector and would throw open more employment opportunities.

She said the decision to provide universal health insurance by the General Insurance Corporation would help provide health security for people even in the rural areas.

PTI