INDIA TO BUILD NEW "'PHARMA CITY"

The Indian State of Andhra Pradesh is to build an INR3.13bn (US$69.27mn) pharmaceuticals park to provide a manufacturing base for Indian drugmakers. The new facility will cover 2,200 hectares and is being funded through a mixture of public and private funds.

The new "Pharma City" is being set up to meet the increasing demands of bulk drug manufacturers, which are predominately located in the city of Hyderabad. Many of these have been unable to expand due to environmental issues and the new park will provide extensive effluent treatment plants and a pipeline to remove hazardous chemicals.

India is the fourth-largest drug producer in the world and accounts for 10% of global drug production. The majority of manufacturing is of generic drugs. Recent government efforts to modernise the sector have included the increasing implementation of Good Manufacturing Practice (GMP) standards.

This is especially important as local producers continue to realise the potential of supplying foreign markets. Due to price pressure in more developed markets of late, Indian firms have been targeting the US$5bn African drug market, where there is a high demand for low-cost medicines but a small local manufacturing industry.