Gujarats pharma industry growth hits fever pitch

September 4, 2023

Since the 2020 fiscal year, there have been 494 new plant approvals and 1,682 licences granted to new units that began production. As of March 2023, the Gujarat pharma industry’s annual turnover was Rs 1.42 lakh crore. Industry leaders say the large numbers of new export-oriented plants will lead to quicker growth in the next five years.

New Delhi: The pharma industry in Gujarat has grown by 40 per cent in the last four years and is set to hit an annual turnover of Rs 2 lakh crore in three years.

Since the 2020 fiscal year, there have been 494 new plant approvals and 1,682 licences granted to new units that began production. As of March 2023, the Gujarat pharma industry’s annual turnover was Rs 1.42 lakh crore. Industry leaders say the large numbers of new export-oriented plants will lead to quicker growth in the next five years.

H G Koshia, commissioner of Food and Drug Control Administration, Gujarat, said, “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.”

According to 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. The size of the Gujarat pharma industry is around Rs 1.42 lakh crore and IDMA estimates that it will reach Rs 2 lakh crore by 2026.

Pharma.com