Indicating a robust trajectory for Gujarat pharmaceutical industry, the state State Food and Drug Control Administration (FDCA) issued 133 approvals – the highest in the country – for allopathic drug manufacturing plants in the state in the 2023-34 financial year.
This marks a significant milestone, with record investment commitments exceeding Rs 10,000 crore, as many companies plan to invest more than Rs 500 crore each.
Industry experts believe the number of new plants has reduced compared to the Covid period, but the state is getting ultra-modern export-oriented plants. This underscores Gujarat’s position as a pharmaceutical hub. Since March 2019, a total of 627 new plants have been approved in Gujarat.
FDCA approved 199 projects in 2020-21, 156 projects in 2021-22 and 139 projects in 2022-23. In terms of investments, 2023-24 has been the best. We expect investments of more than Rs 10,000 crore for new plants. The highest commitment of Rs 2,200 crore has been made by a multi-national company while several others plan to invest at least Rs 500 crore each to set up new plants.
Moreover, the last Vibrant Gujarat summit witnessed over 270 MoUs valued at approximately Rs 38,000 crore, with companies expected to submit their plans post land acquisition.
Gujarat boasts over 28% share in pharmaceutical manufacturing in the country and around 31% share in pharmaceutical exports. The state offers an entire ecosystem conducive to the pharmaceutical industry, attracting companies to its fold.
The implementation of GST has levelled the playing field for the Gujarat pharmaceutical industry, making the state an attractive destination for investments.
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