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Telangana IDMA eyes growth strategies of Gujarat & Maharashtra to replicate in local pharma sector
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Peethaambaran Kunnathoor, Chennai.
June 23 , 2025
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Although Telangana is the ‘Bulk Drug Capital of India’, the pharmaceutical industries under the leadership of the Indian Drug Manufacturers Association (Telangana IDMA) will replicate the successful strategies of growth implemented by Gujarat and Maharashtra states for further elevation of the state’s pharma position, says KV Rambabu, the newly elected president of the Telangana IDMA.
We see that these two states are following certain specific practices for propelling their pharma sectors to leading positions. To achieve greater success in industry and business on our side, we want to incorporate their practices and strategies into our business, he told Pharmabiz.
“Our vision is to make Telangana a global hub for end-to-end pharmaceutical manufacturing, from raw materials to finished dosages. Key trends shaping this trajectory include biosimilars, green chemistry, and self-reliance in APIs. Hyderabad has now become a preferred location in India for global bio-pharma companies to set up their GCCs (global capability centres). We expect Hyderabad pharma ecosystem to attract more investments unlocking scale, sustainability, and global competitiveness for the industry,” Rambabu commented.
Talking about the structure of the pharma sector, the industry association president said Telangana is home to more than 800 pharmaceutical manufacturing units. Among these, a large proportion, approximately 70 percent, are small and medium-sized enterprises (SMEs). Besides, about 40 to 50 major national and multinational companies have significant footprints in the state. Furthermore, the state boasts of having a strong presence of R&D and biotech firms backed by institutions like NIPER, CCMB, and IICT. The Centre for Cellular and Molecular Biology and the Indian Institute of Chemical Technology are prominent research institutions working under the Council of Scientific and Industrial Research (CSIR).
As regards the SSI units in the pharma sector, he said small-scale units face challenges from stringent compliance demands, particularly in adapting to the revised Schedule M norms. While the government has introduced helpful measures like single-window clearances and capital subsidies, more direct support is still required. The state IDMA has been advocating for phased implementation of the new Schedule M, interest subvention on technology upgradations, and common facilities in pharma parks to ease the burden on MSMEs.
He said the IDMA association in the state is actively working to empower the Pharma SMEs. IDMA initiated several key programmes, including valuable workshops focused on Good Manufacturing Practices (GMP), Schedule M compliance, and export readiness, equipping businesses with crucial knowledge. Besides, the association has proactively engaged with regulatory bodies to advocate for simpler compliance procedures for easing the burden on SMEs. To foster technological advancement, IDMA has also facilitated digital enablement for its members through strategic partnerships with various IT firms. These are some of the efforts taken by the industry body to support the growth and operational efficiency of local pharmaceutical companies.
According to Rambabu, the backbone of the pharma industry in Telangana is the existing pharma and biotech parks, and industrial clusters which provide shared infrastructure, regulatory support and ecosystem synergies. These parks are crucial to the state’s vision of becoming a globally integrated pharma manufacturing hub. However, the government is planning to develop large-scale integrated pharma parks. Currently, pharma and biotech parks are operating in Genome valley, Jadcherla, Jeedimetla, Pashamylaram, Bollaram, Cherlapally, Nacharam and Pragati Nagar.
To promote the SSI units in contract manufacturing, he said, the IDMA has advocated for fiscal incentives, specifically for units involved in third-party manufacturing, recognizing their unique role in the industry. Additionally, the association has suggested the establishment of dedicated common testing and warehousing zones within pharma parks, which would significantly reduce operational burdens and costs for smaller manufacturers. A proposal for streamlining procurement policies to encourage local sourcing for public health programmes, ensuring that smaller players have a fair chance to contribute.
When asked how the drug control department in the state supports the pharma industry for creating a conducive environment for growth, Rambabu said the Telangana DCA is very much cooperative and proactive for industrial growth. However, the industry demands for faster turnaround times for licenses and approvals. Similarly, the CDSCO zonal office in Hyderabad is guiding the firms engaged in exports, and they also help in the digitization processes.
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