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Gujarat
Lack of export orders worries Gujarat pharma sector
Virendra Pandit
Ahmedabad, Dec. 2
Waiting for export orders to materialise, the pharmaceutical sector in Gujarat, which had a turnover of Rs 15,000 crore in 2006, is now stagnating, almost stopped recruitment two years ago and, despite the Centre halving excise duty to eight per cent last year, failed to bring back the manufacturing units, it ‘lost’ to tax haven states such as Himachal Pradesh, Uttarakhand, Jharkhand and Jammu and Kashmir in recent years.
Although the ongoing global economic meltdown is yet to affect the pharmaceutical sector in Gujarat, which commands 42 per cent of India’s pharmaceutical turnover in terms of domestic consumption and 22 per cent of exports, many plants were already working two shifts, instead of the three, due to lack of export orders, Dr R.S. Joshi, Executive Secretary, The Indian Drug Manufacturers’ Association, or IDMA, (Gujarat State Board), told Business Line here on Tuesday.
Exports
Pharmaceutical products’ exports from Gujarat include 40 per cent of bulk drugs and 60 per cent formulations.
Of the State’s 6,000-odd licenced pharmaceutical units, 3,500 were in the manufacturing, the remaining being in loan-licence and contract manufacturers’ category.
Of these, around 180 had either set up new units or shifted operations altogether to the tax-haven states some three years ago to take tax benefits.
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