AP & Telangana on Track to Become Leading Centers for Life Sciences

Fueled by cutting-edge infrastructure, a skilled workforce, proactive government support, an increase in global demand, and abundant investment prospects, Andhra Pradesh and Telangana are well-positioned to significantly impact India’s life sciences domain.

Both regions serve as vital hubs for the production of pharmaceuticals, biotechnology, and medical devices, with a strong emphasis on bulk drugs and biosimilars. The establishment of industrial parks and special economic zones dedicated to pharmaceuticals provides essential infrastructure for both manufacturing and research activities.

The abundance of educational institutions and universities offering courses in pharmaceuticals and biotechnology ensures a consistent flow of skilled professionals into the workforce. Pro-business government measures, including pharmaceutical incentives, investments in R&D, and efficient regulatory frameworks, further support industry growth.

Additionally, the region’s access to key raw materials and active pharmaceutical ingredients (APIs) cuts down on logistical expenses and boosts production efficiency. The growing global need for generic medicines and biopharmaceutical advancements presents a significant market opportunity for businesses operating in Andhra Pradesh and Telangana.

Both states attract investments from domestic and international pharmaceutical companies, leading to new projects and expansion initiatives. A notable focus on innovation is evident as numerous companies invest in research and development of new drugs and therapies. Collaborations between academia, research institutions, and industry participants are fostering innovation and contributing to the evolution of the pharmaceutical landscape.

These dynamics position Andhra Pradesh and Telangana as promising leaders within the pharmaceutical sector, strengthening the region’s economic growth, according to AP’s Minister for Education, IT, and Electronics, Nara Lokesh, and Telangana’s Industries and IT Minister, D. Sridhar Babu.

The states feature over 250 APIs/bulk drug units, including 38 WHO-approved and 20 USFDA-approved facilities. Pharmaceutical clusters in Vishakhapatnam, Srikakulam, Nellore, and Vijayanagaram highlight Andhra Pradesh’s focus on bulk drugs while exploring collaborations in medical device technology, biosimilars, gene therapy, and specialized drugs, ushering in a new era of growth.

Progress in Andhra Pradesh and Telangana
Andhra Pradesh is leading India’s pharmaceutical industry as the top exporter of pharmaceutical goods among the states. It houses renowned companies at Jawaharlal Nehru Pharma City (JNPC) in Vishakhapatnam and APSEZ Pydibhimavaram, Srikakulam. Investments in APSEZ Atchutapuram, Vishakapatnam, and APSEZ Naidupeta, Nellore, also feature significant participation from domestic and international firms.

Initiatives such as the AP Industrial Policy 2020-23 and the Special Package Incentives for Bulk Drug Park development have further cemented progress in the life sciences sector.

Medium, large, and mega projects benefit from government incentives like the Production Linked Incentive Scheme (PLI 2.0) and full Foreign Direct Investment (FDI) in pharmaceuticals under the automatic route, stimulating greenfield pharmaceutical projects.

Telangana Focuses on Innovation
Telangana emphasizes innovation and excellence in manufacturing while ensuring sustainable development and global competitiveness in the pharmaceutical industry. Its strategic initiatives have transformed the state into a hub attracting investments from businesses in Karnataka and more. Large facilities from Biocon, Syngene, and Shilpa Medicare are evidence of progress here.

Hyderabad Pharma City, recognized as a National Investment and Manufacturing Zone (NIMZ) by the Union government, is an epicenter for R&D and manufacturing. Telangana offers an ideal environment for pharmaceutical investments, with numerous universities and technical institutions, along with facilities for managing the medicine supply chain through key transportation links.

Hyderabad’s leading role in bulk drug manufacturing is evident in innovative products like Dr. Reddy’s Labs’ wearable therapy device, Bharat Biotech’s Covaxin, and Biological E’s Corbevax vaccine. The city’s planned pharma parks in Mucherla and the future Hyderabad Pharma City in Ranga Reddy district solidify its position in the pharmaceutical domain.