Business Standard quoted Kamlesh Patel, chairman of IDMA, Gujarat State Board, saying: “Currently, nearly 60% of the net pharma production in the country, amounting to around INR250bn, is from the excise-free zones, and small and medium players in the state are the worst-hit.”
Reportedly, pharma manufacturing facilities in Gujarat stands around 800, of which 70% are SMEs in contract manufacturing.
IDMA has approached the central government to remove the 4% excise on pharma products in the upcoming union budget for 2010-2011.
“This could act as a big boost for SMEs to set up shop here,” added Mr Patel.
Chirag Doshi, secretary of IDMA, said: “Pharma production in Gujarat is picking up now. We hope that by the end of this year, the state’s share will reach around 35% of national pharmaceutical production,” quoted the newspaper.