More than 20 pharmaceutical, life science, electronics and information technology companies operating in China have established branches in Telangana
Published Date – Sunday, 3/26/23 at 09:00 AM
Telangana has become the destination of choice for major companies in the pharmaceutical industry
Hyderabad It is not for nothing that Telangana has been called a model for the country. While a report by the Parliament’s Commerce Committee noted that the center failed to capitalize on the “China Plus One” strategy and failed to make a positive impression among businesses relocating from neighboring states, the story in Telangana is quite different.
According to Chief Secretary (IT & Industry) Jayesh Ranjan, at least 20 more pharmaceutical, life science, electronics and information technology companies operating in China have set up branches in Telangana in the past few years.
These differ from other global giants that have been impressed by the Telangana government’s vision and ecosystem, such as Taiwanese giant Foxconn announcing the establishment of a unit in Kongara Kalan that could create 100,000 direct and indirect jobs.
In fact, Telangana has emerged as a preferred destination for big pharmaceutical companies, a parliamentary committee in its report mentioning the industry as one of India’s high reliance on APIs, or active pharmaceutical ingredients, especially industry from China.
The Genomic Valley of Shamirpet is an example of excellence in this field in Telangana. Several top global companies with significant operations in China have set up their divisions in Gene Valley, impressed by the ecosystem and time-bound approvals, all of which have occurred over the past few years.
Instead, the report said, the center was unable to capitalize on the trend of large companies seeking to set up new units outside of China, for various reasons, including politics. Southeast Asian countries such as Vietnam, Thailand, Cambodia and Malaysia are the main beneficiaries of this shift in trend, the committee noted.
India, on the other hand, is weakening its position, especially in the pharmaceutical sector, and continues to import APIs or APIs. In 2022-23, as of November, India imported 70% of its APIs from China, the committee noted.
This is when states like Telangana have been looking for incentives and support tied to production and performance. In fact, Industry Minister KT Rama Rao has been calling on the Center to provide more support to progressive countries like Telangana.
Ahead of the union budget, he wrote to union finance minister Nirmala Sitharaman, pleading for support for Hyderabad Pharma City, the world’s largest single pharmaceutical cluster, to be set up in the state. While Pharma City could be the next game-changer, as the parliamentary committee’s report noted, the center has been sitting idle.
How Telangana gets investment from China
The state’s Invest Telangana division, whose sole agenda is to identify and track potential investors, list their requirements and arrange interactions, is a vital player.
According to Jayesh Ranjan, 14 priority sectors were identified eight years ago. Top professionals are drawn to lead each division as directors. Each department is dedicated to customizing and meeting investor requirements.
Based on their strengths, availability of raw materials, work efficiency, low wages, or other facilities expanding in China or other countries, directors develop similar guarantees, customize and even improve services to ensure investors get what they want, he said. need.
Investors are invited to the country to check the reality on the ground. What follows is an interaction with industry players. Based on their feedback, investors announced their plans, he said.
Some companies have set up additional units here, some have set up export units, and some have both production and export units as they slowly move out of China, he said.
Research on “Investment and Development in Telangana”
Meanwhile, Telangana has also seen an almost 150% increase in new investment proposals for the 2021-22 fiscal year, creating more than 60,000 new investment proposals with the 2020- New direct job opportunities compared to investment proposals received in FY21.
Investment proposals announced for 2021-22 were Rs 76,568.89 crore, compared to Rs 312,745.6 crore investment proposals received in 2020-21.
The study titled “Investment and Development in Telangana” said the total value of completed projects was Rs 2,207.959 crore and revived projects were worth Rs 115.900 crore in 2021-22.
According to CMIE data, outstanding investment projects totaled Rs 7,193,883.9 crore and ongoing projects totaled Rs 4,909,852.4 crore.
Despite the challenges faced in the pandemic year, the country achieved a positive growth rate of 2.2% while the country’s GDP declined by 1.4%.
