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One of the most awaited affairs of Indian parliament took place today. The Government of India presented the budget for 2011-12. Today the finance minister of India presented the budget in the Lok Sabha. There were lots of expectation from the Pharma sectors and companies like Khatore Pharmaceuticals (www.khatorepharma.com) that are engaged in Ayurvedic (alternative) medicine business. The budget hiked the allocations for health for the next financial year of 2011-12. The government continued to provide the push for better health care for the citizens and hiked the plan outlay for health by 20 percent. Alternative medicines also got a push in the budget with the government announcing the reduction in the import duties for certain inputs for the manufacture of alternative medicine.

The budget was especially good for the poor people and increased the allocations for “The Rashtriya Swasthya Bima Yojana” which will be now extended to MGNREGA beneficiaries, beedi workers and others. In 2011-12, the government further proposed to extend the scheme to cover unorganized sector workers in hazardous mining and associated industries like slate and slate pencil, dolomite, mica and asbestos etc.
The biggest relief for the industry and companies like Khatore Pharmaceuticals (www.khatorepharma.com) is that the budget did not hike the excise duty on drugs and did not roll back the stimulus package that were extended couple of years back, though there were some apprehensions in this regard. This will boost the sales of the small pharma companies and help them in these tough economic times when the prices of most of the things have increased.

India has a growing business of pharmaceuticals industry and it is one of the leaders in the generic medicines. In a nutshell we can say that the Budget is neutral for the pharmaceutical sector. The allocation to Ministry of Health & Family Welfare have been increased by 20% to 26,760 crore for FY2012 from Rs 22,300 crore. The industry was expecting an extension on the weighted deduction on the in-house R&D which stands at 200% but there was no extension provided on the weighted deduction which is available till FY2012 only. This was a disappointment for the Pharma companies actively involved in R&D activities. Even though MAT has been increased to 18.5% from 18%, it would be totally nullified by the decrease in the surcharge to 5% from 7.5%. There were also no indications on the extension of the export oriented unit benefit which is available only till FY2011, which could be a negative for the sector, especially companies that have been not or have been slow in expansion through special economic zones.

This article is provided by Khatore Pharmaceuticals the makers of Ayurvedic medicines Kamalahar which is very good for Ayurvedic treatment of liver disorders such as hepatitis, Jaundice, cirrhosis, fatty liver, etc.

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