Pharma Firms Bring INR 2,500 Cr Fresh Investments into Gujarat

The trend follows similar activity in the previous financial year, when Gujarat approved 69 new manufacturing plant licences and another 271 loan licences.

Gujarat has drawn fresh pharma investments worth an estimated INR 2,500-3,000 Cr after approving 59 new allopathic drug manufacturing plants in FY26, reinforcing the state's position as one of India's leading pharmaceutical production hubs.

The expansion has reflected sustained industry confidence in the state's manufacturing ecosystem and is expected to strengthen its role in supplying medicines to both domestic and international markets.

According to the Gujarat Food and Drugs Control Administration (FDCA), the regulator granted 330 fresh licences during FY26, covering approvals for new manufacturing units as well as loan licensing arrangements.

Of these, 59 licences were issued for new allopathic medicine manufacturing plants, while 271 were approved under the loan licence category.

"Gujarat has seen significant new investments in the pharma industry after Covid. Due to an established ecosystem and skilled workforce, a number of multinational companies have also set up bases in Gujarat. Most of the new plants achieve manufacturing standards of international level." - Viranchi Shah, National Spokesperson of the Indian Drug Manufacturers' Association (IDMA).

The regulator also highlighted the continued momentum in new manufacturing approvals over the past several years. 

"Since March 2019, we have approved more than 1,000 new allopathy medicine licences in Gujarat, which suggests that Gujarat is on the way to becoming a pharmacy to the world," the official said.

The trend follows similar activity in the previous financial year, when Gujarat approved 69 new manufacturing plant licences and another 271 loan licences, indicating sustained demand for pharmaceutical production capacity.

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