Karnataka is one of the fastest growing states in terms of the pharmaceutical sector in India. The state occupies the fifth position in the pharmaceutical exports. Around 40% of the state’s pharma produce is exported overseas.
The state contributes about 10% to the pharmaceutical export revenues of the country. At present Karnataka is home to more than 230 pharma and biotech companies.
Factors influencing the growth of Karnataka’s pharmaceutical industry
Karnataka is witnessing a steady growth and expansion of the pharmaceutical industry due to a number of factors, such as:
- The presence of a large number of reputed and globally recognized pharmaceutical companies in the state
- The presence of several advanced Research and Development (R&D) Centres, exclusive pharma SEZ, and pharma industrial zones within the state
- Availability of natural resources and skilled manpower
- World-class technology and infrastructure
- Thriving environment for innovation and start-up
- Supportive policies of the State Government
Pharma manufacturing units in Karnataka
Karnataka is among the top ten states that are known to have the maximum number of pharma manufacturing units in the country. The state has 221 formulation units and 74 bulk drug units. They account for 3% of India’s pharma manufacturing units.
Karnataka has gained recognition the world over for its pharma manufacturing capabilities. The state boasts of several modern pharma plants that are on par with global standards and international regulatory certifications.
The state is known to produce high-quality medicines. It is also a source of affordable generic medicines. The state also marks a low average production cost in its pharma manufacturing units.
Initiatives by the State Government to pharmaceutical industry
Karnataka intends to improve its position within the pharmaceutical sector in India. To achieve this objective, the state government is undertaking various initiatives that will help to promote the pharmaceutical industry in the state. Some of the measures being adopted by the state government for this purpose include the following:
Specialised Infrastructure in pharmaceutical industry Karnataka
In order to promote the pharmaceutical industry in Karnataka, the state government is striving to develop pharmaceutical parks in potent locations across the state through Public Private Partnership (PPP). The government plans to equip the pharmaceutical parks with comprehensive infrastructure facilities like a common testing laboratory, stand-alone power station, common effluent treatment plant (CETP), cold storage with warehousing, etc.
Special Economic Zones
The state is focusing on setting up of Special Economic Zones (SEZs) in order to promote and enhance exports from pharma sector. Under the prevailing SEZ Policy of Karnataka, the promoters of SEZs will be offered various concessions and incentives.
Research and Development
The state government is paying attention to set up research and development centers related to the pharma industry. The aim is to leverage the state’s strengths in relation to the development of the pharma sector. The government plans to encourage the promotion of R&D activities through the allocation of fiscal grants and incentives.
The state government is working to attract mega pharmaceutical projects to improve Karnataka’s competence in the global market. The focus is to widen the scope of production and export goals by providing special concessions and incentives that will draw the mega projects to the state.
The state government is focusing on the pharmaceutical educational institutions to provide support to the pharma sector. The state has more than 75 undergraduate and 40 postgraduate colleges that impart courses in pharmacy. The government plans to support reputed pharma educational institutions to set up Finishing School for Pharmaceutical Learning in the state.The finishing schools will impart industry-specific skills to the existing employees as well as fresh entrants to the pharma industry. The objective is to develop a skilled workforce that can be readily employed in the pharma sector.
Opportunities for Investment- Pharmaceutical Industry Karnataka
In order to procure finance for the development of infrastructure for the PPP-based pharma parks and SEZs, the government is working towards attracting investment. The key areas of focus include the following:
- Development of general infrastructure and commercial space
- Promoting biotechnology finishing schools
- Human resource development
- Setting up of R&D Centres
- Setting up of PPP-based vocational training programs
- Development of industrial training centers
- Establishing innovation and incubation centers for start-ups
The government of Karnataka with many futuristic initiatives has been consistently promoting investment and infrastructure in this field.