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Gujarat Election & Road ahead for Pharmaceutical industry
Gujarat is all set for assembly election in December and obviously it will affect the country’s pharmaceutical capital, Gujarat. We are not discussing on which party will benefit sensex or business of pharmaceutical industry but we are trying to discuss impact of election as whole on pharmaceutical field. Why Pharmaceutical Capital of India ?
33% of India’s pharma sector turnover is from Gujarat.
40 % of India’s machinery for pharma sector is manufactured in Gujarat
World’s first biosimilar: Adalimumab manufactured in Gujarat
28% Of India’s pharma exports
Largest producer of contraceptive pills in the world
40% of CRAMS companies and CROs are based in Gujarat
3574 Manufacturing licenses in Gujarat
Only manufacturer of Dapsonein India
78% of India’s cardiac stents are manufactured in Gujarat
Already, current government has imposed some hard decisions which impacted business of foreign and Indian MNCs. Just for brushing our memory, regulation on FDCs, cardiac stent, knee implant, price control etc. jolted pharmaceutical sectors. But Nifty as well as pharma stocks seems to rise now which proves positive effect on business.
Also, GST has shown positive effect on pharmaceutical industry. Hindustan Times reported that industry leaders say the GST, which is launched on July 1, will help Gujarat to compete with other states such as Himachal Pradesh and Uttarakhand that announced tax sops in the past decade. “With Goods and Service Tax in place, a level playing field has been created among all states. As a result, life has become much easier for pharma manufacturers. Our new investment plans will be in Gujarat,” said Pankaj Patel, chairman of Cadila Healthcare, India’s second-most valuable pharmaceutical company in terms of market capitalisation. The Gujarat election is drawing closer and will have an effect on the markets over the next few weeks. As of now, the Nifty crossing 10400 levels could be an uphill task even the Nifty 10000 provides good support. Markets stands volatile with sustained selling pressure in the first three trading days after a rise in crude oil prices and concerns over the trade deficit widening to a three-year high. Also India’s sovereign credit ratings increased this higher first time in 13 years.