Congress govt’s indifference jeopardizing pharma sector growth in Telangana

Hyderabad, India’s pharmaceutical and life sciences hub, is facing challenges that may dim its reputation in the coming days. Fierce competition from Uttar Pradesh and recent entrants like Andhra Pradesh are putting pressure on Hyderabad’s dominance in pharma and life sciences investments. Compounding the issue is the perceived indecisiveness of the Telangana government, particularly in their approach to the proposed Hyderabad Pharma City.

The current administration, led by Chief Minister Revanth Reddy, has been criticized for the lack of enthusiasm for the pharma sector. This indifference has reportedly led over 70 pharmaceutical companies, initially interested in investing in Telangana, to explore opportunities in states like Uttar Pradesh and Andhra Pradesh. The latter, in particular, has secured a bulk drug park, signaling a proactive stance in fostering the pharmaceutical industry’s growth.

The Andhra Pradesh government has allocated Rs. 2,000 crore in Nakkapally, Anakapally district, with an investment of Rs.1,235 crore for the bulk drug park. This park aims to attract over 100 pharma industries, generating investments totaling Rs.14,340 crore and providing direct employment for 27,360 people. 

Meanwhile, the Congress government’s lack of interest in advancing the pharma sector is evident in its non-committal stance on the proposed Pharma City project. The previous BRS government had planned to develop Pharma City on the outskirts of Hyderabad, allocating around 16,000 acres of land for this purpose. However, the current government’s reluctance to proceed with this project has raised concerns among pharma companies.

The uncertainty is compounded by conflicting statements from government officials. While Chief Minister Revanth Reddy suggests moving away from Pharma City in favor of pharma clusters, Deputy Chief Minister Mallu Bhatti Vikramarka emphasizes a forthcoming policy to boost Micro, Small, and Medium Enterprises (MSMEs) at the expense of multinational companies. These mixed signals have left investors questioning the government’s true intentions and its commitment to the pharmaceutical sector’s growth.

The lack of a clear strategy and supportive measures from the Congress government may push more pharmaceutical companies to explore alternative investment destinations, further jeopardizing Hyderabad’s standing as the pharmaceutical capital of India.