Industry

Boosting Growth: Pharmaceutical MSME Landscape in India

These initiatives aim to reduce import dependence, stimulate domestic manufacturing, and attract substantial investments in the Pharmaceutical MSME sector.

The Health Master

September 12, 2023

541

Drug Medicine Pharma manufacturing Factory Industry Unit — Picture: Pixabay

Table of Contents

Last Updated on January 6, 2024 by The Health Master

Pharmaceutical MSME

Pharmaceutical MSME: In a significant revelation, recent data from the Department of Pharmaceuticals (DoP) as of August 1, 2023, underscores the concentration of pharmaceutical Micro, Small, and Medium Enterprises (MSMEs) in specific states across India.

This insightful report sheds light on the pivotal role played by states like Maharashtra, Uttar Pradesh, Gujarat, and Tamil Nadu in the pharmaceutical sector.

Follow us on WhtasApp Channel

Size of the Enterprise	Investment and Annual Turnover
Micro	Investment less than Rs. 1 crore Turnover less than Rs. 5 crore
Small	Investment less than Rs. 10 crore Turnover up to Rs. 50 crore
Medium	Investment less than Rs. 20 crore Turnover up to Rs. 100 crore

State-wise Breakdown

Maharashtra: Leading the Pack
- Total Companies: 17,760
Uttar Pradesh: Following Strong
- Total Companies: 10,674
Gujarat: Making its Mark
- Total Companies: 8,898
Tamil Nadu: A Strong Contender
- Total Companies: 7,418
Delhi: Holding Ground
- Total Companies: 5,426
Rajasthan: A Steady Presence
- Total Companies: 4,522
Haryana: Making Strides
- Total Companies: 4,180
Telangana: A Growing Hub
- Total Companies: 4,128
Karnataka: Gaining Momentum
- Total Companies: 3,751
Madhya Pradesh: In the Mix
- Total Companies: 3,664

This data affirms that these ten states host a substantial 76 percent of the total pharmaceutical MSMEs in the country.

Click for more articles on MSMEs

Underrepresented Regions

On the flip side, several states and Union Territories showcase a lower number of MSME registrations in the sector, indicating room for growth and development:

Ladakh: 9 Registrations
Sikkim: 12 Registrations
Meghalaya: 17 Registrations
Arunachal Pradesh: 21 Registrations
Nagaland: 26 Registrations
Andaman and Nicobar Islands: 34 Registrations
Tripura: 40 Registrations
Mizoram: 46 Registrations

District-level Insights

Unpacking the data further, we find that certain districts have emerged as focal points for pharmaceutical and related MSMEs:

Ahmedabad: 3,475 Registrations
Pune: 2,763 Registrations
Thane: 2,602 Registrations
Mumbai: 2,128 Registrations
Bengaluru – Urban: 1,925 Registrations
Jaipur: 1,878 Registrations
Hyderabad: 1,745 Registrations
Mumbai Suburban: 1,731 Registrations
Chennai: 1,641 Registrations
Lucknow: 1,426 Registrations

Conversely, some districts report a more modest presence, with only a single registered company in the sector.

Government Initiatives

The Department of Pharmaceuticals, in tandem with the Ministry of Chemicals and Fertilizers, has embarked on several initiatives to bolster and facilitate the growth of MSMEs in the pharmaceutical sector.

Minister of State, Bhagwanth Khuba, highlighted these measures during the latest Parliament Session:

1. Production Linked Incentive (PLI) Scheme:

Financial Outlay: Rs. 6,940 crore
Tenure: FY 2020-2021 to FY 2029-30
Selection of 12 MSME companies for 15 projects

2. Pharmaceutical PLI Scheme:

Financial Outlay: Rs. 15,000 crore
Tenure: FY 2020-2021 to FY 2028-29
Incentivizing 55 selected applicants across three product categories
20 MSME companies selected under Group-C category

3. Strengthening of the Pharmaceutical Industry (SPI):

Financial Outlay: Rs. 500 crore
Tenure: FY 2021-2022 to FY 2025-26
Two-pronged approach: infrastructure support for pharma MSMEs in clusters and technology upgradation of individual pharma MSMEs.

These initiatives aim to reduce import dependence, stimulate domestic manufacturing, and attract substantial investments in the Pharmaceutical MSME sector.

Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.