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Gujarat Food and Drugs Control Administration (FDCA) Commissioner Dr H G Koshia has confirmed that the Bulk Drugs Park in Bharuch is on track for completion in the first half of 2026, with construction in advanced stages. The ambitious project is part of the Central government’s "Promotion of Bulk Drug Parks" scheme and is expected to significantly boost India’s self-reliance in active pharmaceutical ingredients (APIs).
Dr Koshia stated that critical infrastructure developments, including electricity and other essential facilities, are progressing rapidly. The Gujarat government has allocated 800 acres for the park in Jambusar, which is expected to attract large-scale investments from domestic and international pharmaceutical companies.
Under the "Promotion of Bulk Drug Parks" scheme, the Central government has committed Rs 1,000 crore in financial grant-in-aid to develop key infrastructure. These include a common effluent treatment plant, a common solvent storage system, solid waste management, stormwater drains, and a safety and hazardous operations audit centre.
Gujarat Industrial Development Corporation (GIDC), a wholly owned entity of the Gujarat government, has been designated as the State Implementing Agency (SIA) for developing the park at Jambusar.
The scheme also offers financial incentives based on sales of 41 selected pharmaceutical products, covering all 53 identified APIs. The incentives are structured as follows - Fermentation-based products: 20% incentive from FY 2023-24 to FY 2026-27, 15% for FY 2027-28, and 5% for FY 2028-29. Chemical synthesis-based products: 10% incentive from FY 2022-23 to FY 2027-28.
By offering these incentives, the government aims to attract significant investments and strengthen domestic production of essential APIs.
Gujarat continues to be a dominant force in India’s pharmaceutical industry, accounting for 28% of the country’s total pharma exports, valued at $25 billion. The state also contributes 30-31% of India’s domestic pharmaceutical market, also pegged at $25 billion. However, the sector has faced challenges due to rising input costs over the past one and a half years. The completion of the Bulk Drugs Park in Bharuch is expected to mitigate these challenges by providing a world-class manufacturing ecosystem.
Bhagwati Prasad
