Ahmedabad: The growth of the pharmaceutical industry in Gujarat has continued unabated in the financial year 2023-24, with the Gujarat State Food and Drug Control Administration (FDCA) issuing 133 approvals for allopathic drug manufacturing plants.
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.
H G Koshia, commissioner of Gujarat state FDCA, said, “We have approved 133 new allopathic medicine plants in the last financial year, the highest in India. This underscores Gujarat’s position as a pharmaceutical hub, and these plants are poised to commence operations soon.”
Since March 2019, a total of 627 new plants have been approved in Gujarat, indicating its journey towards becoming a pharmacy to the world.
“The 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 in the state.”
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.
A director of a leading pharmaceutical company said, “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.” He added that the steady growth rate and turnover-based business model of the industry entices non-pharma players to enter the sector.
The implementation of GST has levelled the playing field for the Gujarat pharmaceutical industry, making the state an attractive destination for investments.
“New plants are specifically designed for exports, targeting highly regulated markets such as the US and Europe,” he added.
