Gujarat's Pharma Industry on a Growth Spree, Aims for Rs 2 Lakh Crore Turnover by 2026

The pharmaceutical industry in Gujarat, India, is experiencing a remarkable growth trajectory, with a 40% increase in the past four years. As of March 2023, the industry's annual turnover stands at Rs 1.42 lakh crore, and it is poised to achieve an annual turnover of Rs 2 lakh crore within the next three years. This surge can be attributed to several factors, including the implementation of the Goods and Services Tax (GST), which attracted investments from other regions due to uniform taxation. The COVID-19 pandemic further highlighted the resilience of Gujarat's pharmaceutical manufacturers.

Notably, the state has witnessed a surge in the establishment of new export-oriented pharmaceutical plants, with 494 new plant approvals and 1,682 licenses granted since the 2020 fiscal year. This influx of new units is expected to drive rapid growth in the industry over the next five years. The Indian Drug Manufacturers' Association (IDMA) estimates that the Gujarat pharmaceutical industry will reach a turnover of Rs 2 lakh crore by 2026, contributing significantly to the Indian pharmaceutical market's Rs 4 lakh crore size, split equally between domestic and export markets.

To maintain competitiveness and expand globally, industry leaders emphasize the importance of innovation and research and development (R&D). They aim to develop new products, especially as more countries encourage local pharmaceutical production. While the export market holds promising opportunities, challenges include stringent regulatory norms, lengthy approval processes, compliance costs, and the need for skilled human resources.

Despite these obstacles, pharmaceutical companies in Gujarat are optimistic about growth, with a focus on R&D, innovation, and expanding their presence in international markets. Moreover, the medical devices industry in Gujarat is also thriving, thanks to domestic manufacturing and government initiatives like "Make in India" and production-linked incentives (PLI). Gujarat's robust pharmaceutical and medical device sectors contribute significantly to India's healthcare landscape and economic growth, with a positive outlook for the future.