139 new pharma projects worth Rs 7,000-crore get nod in FY23 in Gujarat

Ahemdabad: Gujarat continues to strengthen its position as the pharma hub of India with fresh investments pouring in. In a major Rs 7,000 crore investment push, some 139 new projects in drug manufacturing were approved in the fiscal year 2022-23, according to the state's Food and Drug Control Administration (FDCA).

Gujarat reported the highest number of new plant registrations across the country during the fiscal year, FDCA representatives said. Most new plants have ultra-modern equipment and are export-oriented, industry sources said.

H G Koshia, commissioner, Gujarat FDCA, said, "We have approved 139 new plants. Since March 2019, the state has seen 494 new plants added. As the effect of Covid-19 on the economy wanes, the pharma sector is witnessing buoyant growth in investments. In the last fiscal year, 597 new licences have been issued, much higher than during the Covid year."

On the growth in the pharma sector in Gujarat, 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."

According to the Gujarat FDCA, 199 plants were approved in 2020-21 and 156 in 2021-22.