How Telangana's Strategic Initiatives and Infrastructure Development Fostered a Conducive Environment for Pharmaceutical Product Exports

Indian Pharmaceutical Industry has made remarkable strides in recent years, ranking as the 13th largest by value and the 3rd largest by volume in the world. The industry, which produced over 60,000 generic drugs across 60 therapeutic categories in 2023, exporting 25.3 billion USD worth of pharmaceutical products, plays a critical role in meeting global demand.

India’s Pharmaceutical Landscape

India’s pharmaceutical industry has several key segments:

Contract Research and Manufacturing Services (CRAMS) Active Pharmaceutical Ingredients (API) Formulations Biologics and Biosimilars Vaccines

The API market alone is worth around 11.8 billion USD. Currently, India controls only 8% of the global bio-pharmaceutical market, underscoring the potential for growth and development in this sector.

Pharmaceutical Units in Telangana

Several major pharmaceutical units are present in Telangana. Notable among them are:

Dr Reddy’s Laboratories - Formed in 1984, it specializes in API, formulations, and biologics. Divis Laboratories - Established in 1990, it focuses solely on API production. Aurobindo Pharma - Founded in 1992, it is a diversified player in formulations, APIs, and biologics. Bharat Biotech - Established in 1996, it is a leading producer of vaccines. Biological E - Created in 1953, it handles formulations and biologics. Indian Immunologicals - Formed in 1982, it is involved in vaccine and veterinary products.

Infrastructure and Policy Support

The Telangana government has actively supported the pharmaceutical and medical device sectors through strategic initiatives and infrastructure development. Key factors include:

The development of the Hyderabad Pharmaceutical Cluster (HPC), a National Investment and Manufacturing Zone aimed at attracting 9.7 billion USD investments and generating 560,000 jobs. The establishment of the Genome Valley, a life sciences park that has attracted 200 companies from 18 countries, including global players like Aurobindo RD, Baxter-Syngene RD, and Bharat Biotech. The creation of a Medical Devices Park, the largest in India, focusing on innovative and manufacturing activities for stents, surgical devices, ophthalmic devices, and more. The announcement of an AI-based Pharma Healthcare IT Hub to develop AI skills, aiming to generate 50,000 direct and indirect jobs.

Export Focus and Government Initiatives

The Telangana government, through the Pharmaceutical Export Promotion Council of India (PHARMEXCIL), supports and promotes pharmaceutical exports. Hyderabad alone is a hub for life sciences industry, producing 1/3rd of the country's pharmaceutical products and 1/5th of its pharmaceutical exports. The state has a stronghold in vaccines, with 65% of the country’s vaccine manufacturing and export originating from Hyderabad.

Conclusion

The journey of Hyderabad’s pharmaceutical industry began with the establishment of Biological E, which started vaccine production in 1962. Over the decades, the erstwhile Andhra Pradesh and present Telangana governments have strategically set up key infrastructure and policies. This has made Hyderabad a global pharmaceutical manufacturing hub, with a significant focus on exports. The state’s continued support and development in these sectors ensure its position as a key player in the global pharmaceutical market.