Bharuch: The proposed bulk drug park in Jambusar is poised for rapid development, as the state government is expected to initiate the tender process for the park’s common facilities and the allocation of land to companies soon.

Encompassing 2,000 acres, this park will play a pivotal role in facilitating the domestic production of key starting materials (KSM), Active pharmaceutical Ingredients (API), and pharmaceutical intermediates that are currently imported from China. According to the Indian Drug Manufacturers’ Association (IDMA), the park is foreseen to accommodate 400 companies with an investment of over Rs 8,000 crore.

IDMA President Viranchi Shah emphasised Gujarat’s significance as a pharmaceutical hub, contributing significantly to both exports and production. To reduce reliance on imported bulk drugs, the central government proposed three bulk drug parks across the country, including the Jambusar location. The park’s shared facilities, encompassing nitrogen utility, Common Effluent Treatment Plant (CETP), solvent recovery, training, testing, and research, are expected to be operational by the end of the fiscal year.

The bulk drug park is projected to attract approximately 400 companies manufacturing a variety of products. By utilising government-provided shared facilities, production costs can be reduced, enhancing competitiveness against Chinese pricing.

Despite a 5.1% export growth in the pharmaceutical industry during the first quarter of 2023–24, the sector’s reliance on imported raw materials has grown. API imports increased substantially from $2,110 million in 2015–16 to $3,180 million in 2022–23, primarily sourced from China. The Production-Linked Incentive (PLI) scheme introduced in 2020 by the central government aims to curtail import dependence and boost domestic raw material manufacturing. IDMA anticipates that the PLI scheme, along with the establishment of bulk drug parks, will significantly reduce API imports in the years ahead. DeshGujarat