The states of Gujarat, Maharashtra, Telangana, and Himachal Pradesh–significant pharmaceutical hubs in India–displayed diverse political trends in the 2024 exit polls. According to the exit poll 2024, the National Democratic Alliance (NDA), particularly the Bharatiya Janata Party (BJP), could perform well in most of these states.
"The past decade has seen progress in the Indian pharmaceutical sector, driven by initiatives such as the Production Linked Incentive (PLI) schemes, regulatory reforms, and an increased focus on healthcare access. These policies have boosted domestic manufacturing capabilities, fostered innovation, and expanded access to essential medicines. While previous policies have laid a foundation, they should be continued and enhanced to address emerging challenges and capitalise on new opportunities," Raj Prakash Vyas, President-Corporate Affairs at Gujarat-based Cadila Pharmaceuticals Limited, told BT.
"Through collaboration with the government, Cadila Pharmaceuticals is committed to realising a future where India emerges as a global leader in pharmaceutical innovation, ensuring access to high-quality, affordable healthcare for all," he added, suggesting that the government should establish an Innovation Task Force (ITF) specifically dedicated to pharmaceuticals.
Gujarat, Maharashtra, Telangana, and Himachal Pradesh each play crucial roles in the pharmaceutical supply chain. Gujarat, home to many leading pharmaceutical companies, is projected to support the BJP. Similarly, Maharashtra, particularly the Mumbai-Pune belt, also remains a stronghold for the BJP-led NDA. Himachal Pradesh’s Baddi region, crucial for pharmaceutical manufacturing, is also likely to remain under BJP control according to exit polls, ensuring the maintenance and expansion of its critical manufacturing base. This political stability is likely to provide a favourable environment for ongoing and future pharmaceutical projects, experts have said calling for more investment in the sector.
“The pharma and healthcare industry should be seen as a catalyst for economic growth. While it directly employs over 6 million individuals, it represents the rising investment potential of our country. Going forward, focusing on domestic manufacturing of essential drugs needs investment,” Dr Rashmi Saluja, Executive Chairperson, Religare Enterprises & Chairperson, Global Trade and Technology Council (India) said.
PhillipCapital, a share and stock broking company, recently highlighted in a report the BJP government's initiatives aimed at strengthening India's position as the 'Pharmacy of the World.' These initiatives include boosting the manufacturing and research capacities of the pharmaceutical sector, particularly in APIs. The report also mentioned the expansion of Research Linked Incentive (RLI) schemes to incentivise companies to invest in research for new drugs, chemical entities, and biological entities.
These developments, the report said, are viewed positively for Contract Development and Manufacturing Organization (CDMO) players such as Divis, Syngene, Suven, and Ami Organic. Additionally, the BJP government plans to extend support to Bharatiya vaccine manufacturers and biopharma companies, aiming to enhance production and distribution efficiency and reduce timelines for vaccine manufacturing, albeit without direct involvement in vaccine production activities, the report released in April had said.
It is pertinent to note that Divis Laboratories is based in Hyderabad, Telangana, India. Syngene International is headquartered in Bangalore, Karnataka, India. Suven Life Sciences is located in Hyderabad, Telangana, India. Ami Organics is based in Vadodara, Gujarat, India.
Interestingly, Telangana, with its noted “Pharma City” Hyderabad, showed potential gains for the Indian National Congress (INC). A political shift here could lead to new policy directions impacting the sector’s growth trajectory, as per experts. The official election results are scheduled to be announced on 4 June.