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Andhra Pradesh and Telangana have made significant strides in establishing a strong foundation for the life sciences sector, bolstered by robust infrastructure and supportive government policies. There are strong growth opportunities propelled by the two states’ regulatory support, cost-effective ecosystem across pharma, biotech, medical devices and healthcare sectors, stated Chakravarthi AVPS, chairman, Federation of Pharmaceutical Entrepreneurs (FOPE), Telangana & Andhra Pradesh, advisor, international affairs, Federation of Asian Biotech Associations’(FABA) in an email interaction with Nandita Vijayasimha. Excerpts:
How do you see the growth of life sciences (pharma, biotech, medical devices) and healthcare in Andhra Pradesh and Telangana in the coming years?
The life sciences sector in Andhra Pradesh and Telangana is set for significant growth, driven by several key factors. In the area of pharmaceuticals. Telangana, known as India’s ‘Pharma Capital,’ leads with more than 800 pharma companies like Dr. Reddy’s, Aurobindo Pharma, Hetero among many others. A focus on R&D for generics and biosimilars will drive expansion. Global demand for vaccines and generics further supports its growth.
As far as biotechnology is concerned, Telangana’s Genome Valley is a biotech hub fostering innovation, start-ups, and collaborations in areas like biologics and diagnostics. Andhra Pradesh’s biotech sector is also growing, supported by incentives and infrastructure.
In medical devices, Telangana’s medical devices park near Hyderabad positions it as a global manufacturing hub. Both states benefit from strategic proximity to the South East Asian markets and government initiatives aimed at attracting investments in this sector.
Coming to healthcare infrastructure, Andhra Pradesh is focusing on developing new medical colleges, while Telangana is enhancing public healthcare and exploring digital health and telemedicine. Medical tourism is also growing, particularly in Hyderabad.
Moving to towards policy and investment, Telangana’s life sciences policy and Andhra Pradesh’s focus on medical education and healthcare accessibility foster a business-friendly environment. Both states attract significant investments in life sciences start-ups, particularly in biotech and medical devices.
In a nutshell, the growth of life sciences in both states is supported by infrastructure, policy initiatives, and global market opportunities, with Telangana’s established ecosystem and Andhra Pradesh’s growing base complementing each other.
How would FOPE view the scene of life sciences in these states?
FOPE sees strong growth opportunities in Andhra Pradesh and Telangana’s life sciences sector. Telangana, especially Hyderabad, leads in pharmaceuticals with its established infrastructure, including Pharma City, and dominance in API (active pharmaceutical ingredient) production and exports. FOPE commends the state’s regulatory support, cost-effective environment, and its focus on biosimilars. Biotech is driven by the Genome Valley and its global R&D collaborations, positioning the state as a vaccine hub.
In Andhra Pradesh, FOPE sees growing potential in the biotech and medical devices sectors, particularly with government support for R&D and infrastructure like medical device parks. The healthcare sector in both states benefits from investments coming in through public-private partnerships and medical tourism, opening up new markets for entrepreneurs.
Overall, FOPE would focus on leveraging regulatory simplifications, infrastructure, and policy support, encouraging investment in APIs, biosimilars, and innovative healthcare solutions.
What are FOPE’s initiatives for the pharma entrepreneurs in the areas of ease of doing business (EoDB) among others including working towards compliance of revised Schedule M?
FOPE is driving multiple initiatives to support pharma entrepreneurs. We focus on easing business processes by advocating for regulatory simplification and investment-friendly policies. FOPE facilitates networking and collaboration among entrepreneurs.
In terms of compliance, we offer training on the revised Schedule M, helping companies with infrastructure upgrades to meet international standards. Our flagship programs include workshops on reducing human errors and leadership development. FOPE also provides updates on regulatory changes and Pharmacovigilance, while promoting cluster development and supporting start-ups through incubation programs.
These efforts aim to enhance business efficiency, regulatory compliance, and competitiveness in the global market.
In your opinion what are the core strengths of AP and Telangana in the pharma, biotech, medical devices and healthcare?
Andhra Pradesh is a growing pharma hub, focusing on bulk drugs and APIs, with clusters like Visakhapatnam leading the show. Biotech is emerging through R&D partnerships. Medical device parks are in development. Healthcare is expanding with public-private partnerships in urban areas.
Telangana, led by Hyderabad’s ‘rich history in pharma’, produces a significant share of India’s pharmaceuticals. Biotech thrives through the Genome Valley, attracting R&D. Medical devices park supports manufacturing and innovation, while advanced healthcare infrastructure and health tech start-ups drive growth in the state.
What are the key issues hampering the growth of the sector primarily across large and MSMEs?
The key issues affecting the growth of large pharma companies and micro small and medium enterprises (MSMEs) include regulatory hurdles, such as delays in approvals and compliance with stringent international standards. Access to capital is another challenge, especially for MSMEs, limiting their capacity to upgrade technology and infrastructure.
Rising input costs, particularly for raw materials, and dependency on imports, for instance APIs from China also impact profitability. Additionally, fragmented supply chains, lack of skilled workforce, and difficulties in scaling innovations are common problems. Finally, balancing global competition while adhering to evolving regulations like Schedule M is burdensome for both large and small players.
What are the visible trends in these two states? Going forward, how do you envision the future of these states in the life sciences sector?
The visible trends in Andhra Pradesh and Telangana’s life sciences sector include increased investment in pharma manufacturing, biotech R&D, and medical device production. In Telangana, the presence of Genome Valley and Hyderabad’s Pharma City & Clusters will drive innovation, particularly in vaccines, generics, and biosimilars. Medical devices are gaining traction with new manufacturing hubs, while digital health and telemedicine are emerging as significant areas of growth in both states, especially post-pandemic. Andhra Pradesh is catching up with a focus on healthcare infrastructure, biotech collaborations, and medical education.
Going forward, Telangana is likely to maintain its leadership in pharma and biotech, continuing to attract global investments and drive innovation. Andhra Pradesh, with its expanding healthcare and biotech sectors, will strengthen its position, leveraging government support and infrastructure development. Both states are poised to complement each other, making them key players in India’s life sciences landscape.
Considerable global investments have come and what do you attribute this to?
There have been considerable global investments in Telangana and Andhra Pradesh’s life sciences sector and those can be attributed to multiple factors. These include strong government support with industry-friendly policies, ease of doing business, and targeted initiatives like Telangana’s life sciences policy and pharma city development.
Both states have invested in world-class infrastructure, such as biotech hubs like genome valley, medical device parks, and R&D centres. They also offer skilled labour, cost-competitive manufacturing, and proximity to key markets. Additionally, India’s reputation as a major player in pharmaceuticals and generics, particularly in global vaccine supply, has attracted further international interest.
Viewing the two states, what are the kind of capabilities that come to your mind?
Well, when thinking of Telangana, its role as India’s bulk drug capital stands out, particularly with Hyderabad leading in pharma manufacturing and exports. The state is also a major centre for biotech innovation, thanks to the Genome Valley. Telangana’s medical devices park near Hyderabad further positions it as a growing hub for medical device manufacturing.
Andhra Pradesh, while not as dominant in bulk drugs, has emerging capabilities in biotech and healthcare infrastructure. Its focus on building medical colleges and healthcare facilities, combined with coastal access for exports, makes it increasingly attractive for life sciences investments. Both states offer complementary strengths in the life sciences space.
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