Archive | May, 2013

The Maharashtra, Gujarat double dose…

1 May

With phenomenal growth over the last few decades, India’s pharma industry has turned from a non-entity to a world leader in the production of high quality generic drugs. From about a few hundred crore rupees around the 1970s, drug production last year was worth over Rs 120,000 crore.
Image Till the 1960s, medicines were imported and the pharma industry was dominated by foreign companies. But now India has acquired a dominant position globally. Maharashtra and Gujarat have led the way in this journey.

• In 2011, Maharashtra’s share in FDI was 32.16% against Gujarat’s 4.72%; Maharashtra received 120 investment proposals against Gujarat’s 50. Maharashtra’s per capita income is Rs 87,686 against Gujarat’s Rs 75,115.
• Maharashtra is home to 3,139 pharmaceutical units. While Gujarat is a strong pharmaceutical manufacturing hub with over 3,000 units. Its rich base of supply of APIs has attracted many MNCs to set up facilities in Gujarat.
• However, the pharma industry in both Maharashtra and Gujarat received a setback with tax and excise exemptions offered by industrially backward States which resulted in quite a few units shifting their manufacturing facilities to those states for more attractive fiscal benefits.
• Although the Gujarat pharma industry is making rapid strides, Maharashtra still remains the country’s pharma capital.
• Goa is also now developing as the third State in the western region of India with a major presence of pharma manufacturing units. Goa’s power tariff compares very favourably with Maharashtra’s and Gujarat’s.

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