Gujarat Government to Expedite Bulk Drug Park in Jambusar for Domestic Drug Production

The Gujarat government is moving ahead swiftly with its plans to establish a bulk drug park in Jambusar, initiating the tender process for communal facilities and land allotment to companies. Encompassing a vast 2,000 acres, the park aims to bolster the domestic production of critical Key Starting Materials (KSMs), Active Pharmaceutical Ingredients (API), and pharmaceutical intermediates, which are currently imported from China.

The Indian Drug Manufacturers’ Association (IDMA) envisions the park as a hub for around 400 companies, attracting investments exceeding Rs 8,000 crore. Gujarat’s significance as a pharmaceutical hub, contributing significantly to both national exports and production capabilities, has been underscored by Viranchi Shah, IDMA’s President.

With the aim of reducing reliance on imported bulk drugs, the central government proposed the establishment of three bulk drug parks across India, one of which is slated for Jambusar. Shared facilities within the park, including utilities, a Common Effluent Treatment Plant (CETP), solvent recovery units, training centers, testing laboratories, and research spaces, are expected to be operational by the fiscal year’s end.

The park is projected to attract around 400 diverse companies engaged in manufacturing pharmaceutical products, enhancing competitiveness against Chinese pricing strategies by streamlining production costs. Despite witnessing 5.1% growth in pharmaceutical exports during the first quarter of the 2023-24 fiscal year, the industry’s reliance on imported raw materials has increased. Notably, imports of APIs surged from $2,110 million in 2015-16 to $3,180 million in 2022-23, with a significant portion originating from China.