With new investments flooding in, Gujarat, India's pharmaceutical industry, is able to maintain its leadership. According to Gujarat's Food and medication Control Administration, 139 new allopathic medication manufacturing projects received approval in the fiscal year 2022–2023 as part of a significant £700 million investment push.
Industry insiders credit the growth to both the uniform taxation following the GST launch and growing desire from non-pharma businesses to participate in this area. According to FDCA authorities, Gujarat reported the most new plant registrations nationwide during the fiscal year. H G Koshia, commissioner, FDCA – Gujarat, said, “As the effect of Covid-19 on the economy is waning, the pharma sector is witnessing a buoyant growth in fresh investments.”
Viranchi Shah, national president, Indian Drug Manufacturers Association (IDMA), said, “After the Covid pandemic, there is growing interest in the pharma sector and several players have forayed into the industry. New projects will attract investment and generate employment for some 14,000 people. ”
Shah also attributed the growth in fresh investments to the GST rollout. “Before the GST rollout, several states were tax havens and took away investment opportunities from Gujarat’s pharma industry. Uniform taxation has helped the growth of the sector here. Manufacturing units here are equipped to export drugs to highly regulated markets such as the US and Europe. Gujarat has the complete ecosystem for the pharma sector, and we believe the state will continue to attract fresh investment.”