India's pharma industry is the third largest in the world in terms of ...

NCL, NCCS, NIV like referral national institutes. We have Infrastructure like ITBT park
in Hingewadi, hence the potential is big but the proper and planned efforts are required.
3. What are the challenges as far as research and development is concerned in Pune
pharma sector?
Basically not only Pune but the entire pharmaceutical Industry in India has seen lot of
turbulence due to Central Govt policies in last decade. At present few states in India such
as Himachal Pradesh, Uttarakhand, Jammu and Kashmir and Sikkim etc. enjoys the tax
holidays which include 100% Income tax benefit for first 5 year then 50% for next 5
years and Central Excise Tax as well as Sales Tax exemption for entire 10 years period.
Due to which the majority of companies have started their plants in these states or they
outsource their products from these areas. Maharashtra is the only state in India wherein
Octroi is still levied, which is another negative point against the industry. Multinationals
as well as Big Pharmaceuticals will not have major impact of such policies but the
contract manufacturing units or SSI, who cannot go to these states, are simply on the
verge of closing down their plants.
4. What are the strategies that you think Pune sector should adopt to stay ahead
in competition?
Pharmaceutical Industry is highly Regulated by various Laws and regulation and lot of
restrictions are there for the startup companies hence it cannot grow simply like Auto or
any other Engineering Industry. Govt Support especially to Small Scale Industry is must
for their sustenance. Cluster activity supported by Govt funding and with Technical
support will help this industry. Govt. procurement from SSI in certain percentage is
another possibility which will boost the economics of SSI. Today’s era is of Merger,
Acquisition and Take over. We need to consider this option with open eye for the growth
as well as for competition. Collaboration with right partner for newer technology and the
access to innovative technology is inevitable for this industry if one needs to progress.
5. What are the future growth prospects of this segment?
Pharmaceutical Industry is part of Health sector and even in the recent financial
meltdown/ recession, this is one of the few sectors which grew in double digit in India as
well as recorded substantial growth world -wide. Due to modern life style, increasing per
capita income and most importantly life expectancy, the need of the medicines is
always on the higher side. Another area wherein this industry should focus more is on
wellness as well as nutraceutical/ dietary supplements, because this is the new area which
has more growth rate than the conventional pharmaceuticals.