Ahmedabad: Gujarat has further cemented its position as India’s pharmaceutical powerhouse with the state’s Food and Drug Control Administration (FDCA) approving 183 new allopathic drug manufacturing facilities in FY 2024-25, marking the highest number of approvals since the Covid-19 pandemic, reports Parag Dave.
“We approved 183 new allopathic medicine plants last financial year, the highest for Gujarat and across India after 2020-21,” said H G Koshia, commissioner, Gujarat FDCA.
“Gujarat is a pharma hub, and these plants will soon be operational, further boosting our dominance. Since March 2019, we have cleared at least 800 new allopathic drug plants, firmly setting Gujarat on the path to becoming the world’s pharmacy. The average investment per plant in FY 2024-25 is an estimated Rs 50 crore, but some companies are investing more. So we estimate total new investments to touch about Rs 12,000 crore, ” he added.
Industry experts say that Gujarat’s mature and well-established pharma ecosystem is driving this record-setting growth. Also, many units from northern India are shifting to Gujarat.
Shrenik Shah, national joint secretary of the Indian Drug Manufacturers’ Association (IDMA), said, “Many companies from Gujarat had set up manufacturing plants in tax havens around two decades ago, but after GST implementation, they have been moving back to Gujarat. Also, in the last two years, risk-based inspections have increased, resulting in many companies deciding to set up new plants in Gujarat, ensuring compliance with international regulatory standards.”
A director of a pharma company in Ahmedabad, requesting anonymity, said, “Gujarat commands at least 28% of India’s pharma manufacturing and nearly 31% share in the country’s pharma exports. Most of the new plants are aimed at the export market, especially Europe’s highly regulated environment.”
“After the implementation of GST, Gujarat has seen steady new investments in the pharma sector. Tax havens lost their appeal after GST implementation and Gujarat’s pharma ecosystem has become the preferred choice for companies,” he further added.
Ahmedabad: Gujarat has further cemented its position as India’s pharmaceutical powerhouse with the state’s Food and Drug Control Administration (FDCA) approving 183 new allopathic drug manufacturing facilities in FY 2024-25, marking the highest number of approvals since the Covid-19 pandemic, reports Parag Dave.
“We approved 183 new allopathic medicine plants last financial year, the highest for Gujarat and across India after 2020-21,” said H G Koshia, commissioner, Gujarat FDCA.
“Gujarat is a pharma hub, and these plants will soon be operational, further boosting our dominance. Since March 2019, we have cleared at least 800 new allopathic drug plants, firmly setting Gujarat on the path to becoming the world’s pharmacy. The average investment per plant in FY 2024-25 is an estimated Rs 50 crore, but some companies are investing more. So we estimate total new investments to touch about Rs 12,000 crore, ” he added.
Industry experts say that Gujarat’s mature and well-established pharma ecosystem is driving this record-setting growth. Also, many units from northern India are shifting to Gujarat.
Shrenik Shah, national joint secretary of the Indian Drug Manufacturers’ Association (IDMA), said, “Many companies from Gujarat had set up manufacturing plants in tax havens around two decades ago, but after GST implementation, they have been moving back to Gujarat. Also, in the last two years, risk-based inspections have increased, resulting in many companies deciding to set up new plants in Gujarat, ensuring compliance with international regulatory standards.”
A director of a pharma company in Ahmedabad, requesting anonymity, said, “Gujarat commands at least 28% of India’s pharma manufacturing and nearly 31% share in the country’s pharma exports. Most of the new plants are aimed at the export market, especially Europe’s highly regulated environment.”
“After the implementation of GST, Gujarat has seen steady new investments in the pharma sector. Tax havens lost their appeal after GST implementation and Gujarat’s pharma ecosystem has become the preferred choice for companies,” he further added.
