India has carved out a significant portion of the global pharmaceutical pie, registering growth across segments including generics, research and development of New Chemical Entities (NCE) and Contract Research and Manufacturing Services (CRAMS).

Among all the states in India, Gujarat accounts for nearly 42% share of India's pharmaceutical turnover, 22 % of its drug exports and 20% of its chemicals output. Approximately 52,000 people are employed in Gujarat's pharmaceutical sector, which has witnessed 54% CAGR in capital investments over the last three years. (Source: KPMG Analysis)

Gujarat's pharmaceutical industry has evolved in to an innovation-driven, knowledge-focused industry. There are currently approximately 3,500 drug-manufacturing units. Several established companies such as Torrent Pharma, Zydus Cadila, Alembic, Sun Pharma, Claris, Intas Pharmaceuticals and Dishman Pharmaceuticals having operations setup in all major pharmaceutical markets are based in Gujarat.

The SWOT analysis reveals that modern infrastructure facilities, backward linkages with raw material suppliers, established pharmaceutical industry, entrepreneurial mindset, well-developed allied industries and benign regulatory environment are the strengths of Gujarat's pharmaceutical industry.

Some areas which needs attention as there is ample of scope for improvement are low level of R&D spend, relatively inadequate technical manpower and skilled workforce and limited international exposure for most small to medium scale companies.

Opportunities are stored in SEZ-led significant export opportunities and high growth segments such as CRAMS, R&D and generics.

However, announcement of tax holidays from governments of other Indian states, emergence of other alternative pharma destinations abroad and inadequate emission norms and waste disposal facilities hinders growth of the industry in this region.

Gujarat is home for approximately 40% of of Contract Research Organizations (CROs) in the country. Its well established healthcare sector, strong infrastructure facilities and relatively low real estate costs has lured many global and local CROs to set up their establishment shop in the state.

Strong linkages with the chemical sector, a well established machinery and engineering sector, large number of CROs and a booming healthcare sector has played an important role in the growth of Gujarat's pharmaceutical industry.

Gujarat would have to develop into an ideal location for global clinical research, avid competitors in CRAMS and centre of excellence for overall pharmaceutical development.
The state can capture a larger pie of CRAMS global opportunity by establishing a strong ancillary services industry base - such as bio-informatics and clinical data management centres - which can facilitate and boost R&D and other high-end activities

Partnerships between hospitals, academic and research institutions, allied industries and pharmaceutical companies can create an efficient networked model that will help the industry grow at a sustainable rate. Further, the state will also have to capitalise on emerging opportunities such as medical tourism, contract research and pharmaceutical machinery manufacturing. Key to this process will be - building global competitiveness, developing a strong talent pool and foster the mindsets to adopt global practices.