The pharma industry is leading the growth path for Gujarat massively. Data recorded on March 2023 reveals that the Gujarat pharma industry’s annual turnover was Rs 1.42 lakh crore.
Industry leaders are bullish about an even greater growth in the next five years.
H G Koshia, commissioner of Food and Drug Control Administration, Gujarat, told a national daily, “Since GST was rolled out, Gujarat has seen massive new investments in pharma. Lots of companies shifted here from northern and northeastern states as taxation became uniform. These numbers multiplied after Covid, given the resilience shown by pharma manufacturers here.
“In 2022-23, we approved plans for 139 new modern medicine manufacturing units, and the flow of new investments continued this fiscal year too. The state now has 4,000 conventional medicine manufacturing units. Most of these are oriented towards both the domestic market and exports and have the necessary approvals. Our exports will thus increase significantly in the coming years.”
Going by numbers provided by the Indian Drug Manufacturers’ Association (IDMA), the size of the Indian pharmaceuticals market is Rs 4 lakh crore: Rs 2 lakh crore domestic and Rs 2 lakh crore in exports.
As of now, the size of the Gujarat pharma industry is approximately Rs 1.42 lakh crore and IDMA foresees that could reach Rs 2 lakh crore by 2026.
IDMA president Viranchi Shah told the daily, “Indian pharma exports are growing by double digits and more countries are eager to trade with India, so there are greater export opportunities for Gujarat-based pharma companies.
“Gujarat has a sturdy base in formulations and is set to increase its production of active pharmaceutical ingredients (APIs) with the dedicated bulk drugs park.
“This will lower material costs and increase our competitiveness. With most new investments in the pharma sector getting regulatory approvals, there will be increased capacity for exports, which will help us corner a larger share of the global pharma market. The Gujarat pharma industry has grown from Rs 1 lakh crore in the 2019 fiscal year to Rs 1.42 lakh crore in 2023.”
Shah added that Gujarat companies must prioritise innovation and R&D. “Currently, almost all our products are either branded generics or generics and are off-patent. We need to develop new products. The US, Vietnam and the UAE are encouraging local production, and our companies will soon face competition from them in general medicines. Innovative products will give us an advantage.”
Also Read: Jasprit Bumrah Becomes Father To Baby Boy
