Local manufacturing units have access to high quality raw material, which has a positive effect on the end product.
“The number of pharmaceutical units has increased from five to 250 within the past three years and almost 50 them are multi-national companies. The reason for the rapid growth is availability of raw material, low taxation on the manufacture of medicines, no excise duty and subsidies for new units.
“However the government has increased taxation since March 2011” said Rakesh Goyal, managing director of Pentachem Pharmaceuticals, a member of the Himachal Drug Manufacturer Association.
Pentachem’s turnover has increased 20 percent on an average every year.
Balwant Singh Thakur, general manager of Adley Pharmaceuticals, said: “Despite some labour problems and the advantage of lower taxation now gone, Himachal has managed to create a lead over established pharma centers such as Gujarat and Rajasthan. In fact, companies from these states have now shifted most of their production to Baddi.”
Baddi’s rise has been symbolic of Himachal Pradesh becoming one of India’s most progressive states. The state scores highly on income, health and education indices compared to other states in India.
According to a Times of India article, 22.9 percent of the state’s population is under the poverty line. This compares favorably to Gujarat, another state which scores high on development, where 31.8 percent of the population is under the poverty line.
Pharmaceutical manufacturers are of the opinion that the Himachal Pradesh state government should try to build on its good work in attracting industry to the state. They ask the government to consider a lower taxation regime.