Gujarat Backs Pharma Expansion As Industry Eyes Innovation-Led Future

Addressing the Pharma Conclave 2026, organised by The Secretariat in Ahmedabad, Sanghavi, who joined virtually, said that Gujarat’s pharmaceutical industry continues to hold a leading position in India and global markets, aided by policy support and a strong manufacturing ecosystem.

“Gujarat’s pharmaceutical industry enjoys a leading position in India and across the world, and the state government is keen to support expansion projects in the sector,” Sanghavi said.

He noted that the recently announced Viksit Gujarat Industrial Policy has provided significant benefits to the pharmaceutical industry.

“The onus of executing the takeaways of the conclave is on the government. I suggest you send us a list of recommendations that have come out as a result of today’s discussions. We will try our best to implement them,” he said. 

“The Pharma sector is one of the topmost sectors identified by the state government in the Viksit Gujarat Industrial Policy declared two days ago. We have decided to give 50% subsidies on expenses for Research and Development (R&D) to promote the creation of Intellectual Property within the state. We have focused a lot on skill development as well,” Sanghavi said.

He said that the suggestions and innovations emerging from the sector would contribute to building a brighter future for the next generation. 

British Deputy High Commissioner to Gujarat and Rajasthan Stephen Hickling, who was present at the event, said the UK is looking to deepen its collaboration with India in pharmaceuticals and life sciences through innovation, research, and manufacturing

Hickling said, “We remain committed to supporting partnerships between UK and Indian companies by facilitating technology collaboration, enabling market access, and connecting the right partners across our economies.”

Hickling further said the partnership was more vividly illustrated during the COVID-19 pandemic, when India and the UK worked together to develop and manufacture the COVID vaccine at scale. 

“That collaboration with AstraZeneca and the Serum Institute was historic,” he said.

“We remain committed to supporting partnerships between UK and Indian companies by facilitating technology collaboration, enabling market access, and connecting the right partners across our economies,” he said. 

Meanwhile, Rajeev Topno, Additional Chief Secretary (ACS) of the Health & Family Welfare Department, said, “The pharmaceutical sector is transitioning from volume-based manufacturing to innovation-led growth, and in a rapidly changing world, we must invest continuously in research and innovation.”

He said that the role of regulators is no longer just to control; it is to facilitate, ease the pain of doing business, and help the sector leverage new opportunities.

Speaking on Artificial Intelligence (AI) in the pharmaceutical sector, Amit Sheth, Founder, Indian AI Research Organisation (IAIRO), and Professor, Computer Science & Engineering, University of South Carolina, said that India’s competitive advantage lies not in replicating large language models like ChatGPT but in developing "Small AI" - purpose-built systems designed to solve industry-specific challenges.

Such models could strengthen pharmaceutical manufacturing, improve production quality, ensure regulatory compliance across multiple jurisdictions, and generate high-value employment.

Stressing the need for reliability in enterprise applications, he noted that while consumer AI can tolerate minor inaccuracies, industrial AI demands a far higher degree of precision to support mission-critical operations in the pharmaceutical sector.  

The conclave also witnessed a panel discussion where Hiranmay Mahanta, CEO, i-Hub, R Ramanathan from Parle Global Tech, Hemant Koshia and Aniket Talati took part. 

During the discussion, Hiranmay said that India needs to create a very contemporary and competitive human capability pedagogy programme.

“We need to create talent not only for today's industry needs, we need to create talent for tomorrow's industry needs,” he said. 

Hemant Koshia said that the future will be changing from Chemistry to Biologics, and all the manufacturers must think in the biologics sector. 

Meanwhile, R Ramanathan said, “the Indian technologies are a little behind, but historically, global manufacturers have set some benchmarks in precision engineering, automation and innovation.” 

Aniket Talati said that investment in research and technology will define the winners, and AI will enable the pharmaceutical industry to innovate faster by allowing companies to fail fast and learn quickly. 

In another panel, Ajay Sachan, Deputy Drugs Controller, Central Drugs Standard Control Organisation (CDSCO), Ministry of Health and Family Welfare, said that there is nothing problematic about the revised Schedule M. It is not just a schedule; it is more than a regulatory framework.

“A company that will comply with the revised Schedule M will be well-positioned with the WHO Good Manufacturing Practices,” he said. 

The most important takeaway from the conclave was that India's pharmaceutical sector is entering a new era.

For years, success was measured by production volumes and export growth. Increasingly, however, competitiveness will depend on research, intellectual property, advanced manufacturing and AI-driven productivity.

"The next boom will be new innovative medicines that can cater to unmet medical needs," said Vishal Rajgarhia, Chairman, Knowledge Chamber of Commerce and Industry, Co-Chair, PHDCCI. 

Meanwhile, Pankaj Patel, Chairman, Zydus Lifesciences, who was available through Zoom, said that our policymakers and regulators have to wake up and see that we move from this controlling mindset to a supporting mindset.

Edna D'souza, Cluster Director – Healthcare, Life Sciences and Chemicals at the British High Commission in India, notes that Indian companies should view the UK not merely as a commercial market.

She said that the Comprehensive Economic and Trade Agreement is much more than a tariff agreement—it is about creating faster trade, stronger partnerships and unlocking new opportunities for UK-India collaboration in pharmaceuticals and healthcare.

“Indian companies should look at the UK not just as a market, but as a gateway to innovation, R&D and global expansion, supported by a strong life sciences ecosystem,” she said. 

Amit Sheth, Founder - IAIRO and NCR Chair and Professor, Computer Science & Engineering, University of South Carolina, said, “The future of AI in pharma lies in building trustworthy, purpose-built models that improve drug discovery, ensure regulatory compliance and strengthen production quality.”

RM Patel, Deputy Commissioner, Food and Drugs Control Administration, who was participating in the panel discussion, said that Gujarat is far ahead in regulatory compliance, and I am confident that the industry will successfully overcome the challenges of the revised Schedule M requirements.

"The industry's willingness to embrace change, upgrade facilities, and strengthen compliance is the reason Gujarat continues to lead the country in pharmaceutical manufacturing," he said.

“The change in product mix scheme enables pharmaceutical companies to modify products without seeking fresh environmental clearance, provided there is no increase in the approved pollution load,” Jitendrasinh Mahida, Senior Official, Gujarat Pollution Control Board, said. 

Over the years, the Indian pharmaceutical industry has evolved into a vibrant sector. The Indian pharmaceutical industry is currently valued at around US$ 60 billion, and estimates suggest the sector could grow to US$ 130 billion by 2030.

According to the Commerce Ministry, India’s pharmaceutical exports reached US$ 30.47 billion in FY25, registering a growth of about 9.4% over the previous year.

India is also one of the world’s largest suppliers of generic medicines and accounts for roughly one-fifth of global generic drug supplies by volume, earning it the reputation of being the “pharmacy of the world.”

India holds a vital position in the global Active Pharmaceutical Ingredients (API) market, boasting over 500 API producers and manufacturing 57% of WHO-prequalified APIs.