Shah was speaking at the sidelines of a function to announce the eighth edition of Pharmac India, which will be held from November 7 to November 9. Some 300 exhibitors from across the state will be part of the exhibition that will be held at the Gujarat University convention centre.
AHMEDABAD: With the implementation of goods and services tax (GST), the pharmaceuticals manufacturing industry in the state will get a major boost, according to the estimates of the Indian Drug Manufacturers Association (IDMA) – Gujarat State Board. Gujarat currently contributes 33% of the country’s pharma market and this is expected to reach 40% by 2020, as the benefits of GST trickle in.
Viranchi Shah, chairman of the Gujarat State Board of IDMA, said, “Pharma is a very regulated sector. Earlier, certain government policies incentivized states in northern India and the Northeast, giving them tax benefits and excise exemptions. With this, the focus shifted from the thriving pharma manufacturing industry in Gujarat to these states.”
“However, the implementation of GST has done away with the skewed tax structure and this will the state’s manufacturing industry a further advantage,” he said, adding that with this, products manufactured in Gujarat will cost the same as those manufactured in tax-free zones.
Industry players are looking at 20%-25% growth in the next three to five years, despite the fact that the production dipped from May to July when GST was implemented. It has now gone back to normal.