The Gujarat government is in the process of setting up a world-class bulk drug park at Jambusar in Bharuch district in a bid to make the state a global hub for chemicals and allied industries, said Pankaj Joshi, additional chief secretary to the state’s Chief Minister.
Speaking on the sideline of a book launch function, Joshi said that the state government is in constant touch with the union government to bring one of the three bulk drug parks in Gujarat as many basic chemicals and API manufacturers have shown interest to set up their units in the proposed bulk drug park.
“Government is putting in efforts to overcome three major challenges including availability of quality basic inputs, price of oil and gas, lack of extensive R&D facilities and limitation of world-class infrastructure. These blocks can be removed with cohesive efforts at government level, industry level, institutional level as well as individual level,” he said adding that recently the Gujarat government has come out with new industries policy in which chemicals has been focused as the core sector.
Joshi, who also holds charge of the finance department, said that against only 3.4% of the compound annual growth rate of basic chemicals production over the past eight years in India, demand is growing at the rate of 5.5%. It means the country is not coping up with the demand growth and as a result of its chemical industries are dependent on imports of important basic chemicals, he added.
India’s trade (import-export) deficit of the chemical sector is mind-boggling Rs 8,5000 crore, he said adding, “The country is producing 8,000 different chemicals. The market size of the sector in the country is pegged at $178 billion and by the year 2025, it is expected to touch $ 300 billion. Gujarat contributes nearly 30% ($ 55 billion) in the production of chemicals followed by Maharashtra 16% and Tamil Nadu 7%.”
Gujarat emerged as the chemical, petrochemical and pharmaceutical hub of the country because of conducive industrial atmosphere, the industry-friendly policy of the state government, good infrastructure compared to other states, skilled manpower, strategic geographical location of the state, entrepreneurial quality of people in Gujarat and many other advantages, he said. These advantages wouldn’t stop Gujarat to become a global hub for chemical and allied industry, he claimed.