Sikkim's Tryst With Pharma Sector

Pharma companies are making a beeline to the tiny Himalayan state of Sikkim lured by good government policies, conducive business environment, low cost manufacturing and easy availability of labour

- Sanjiv Das

Sikkim, known for its pic-turesque valleys and lush green hills, is a renowned tourist destination. But, if you think that this is its only claim to fame, think again. The small Himalayan state is also home to more than 40 pharma companies. Till 201415, the state was able to attract investments worth of $414.73 million and the figures continue to grow.

According to India Brand Equity Foundation (IBEF), between 2011-12 and 2016-17, Gross State Domestic Product (GSDP) expanded at a compound annual growth rate (CAGR) of 11.05 per cent to $ 2.93 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.30 per cent to $ 2.58 billion. The Gross State Domestic Product (GSDP) of Sikkim expanded at a high CAGR of 12.18 per cent between 2011-12 and 2017-18. The state has attracted Foreign Direct Investment (FDI) equity inflows worth $4.78 billion during the period April 2000 to June 2018, according to data released by Department of Industrial Policy and Promotion (DIPP).

The state is not so far behind Gujarat, Maharashtra and Baddi in Himachal Pradesh in becoming a hub for the pharma industry.

In fact, Express Pharma's August 2016 edition carried an article showcasing the state’s emergence as a pharma hub. Recently, Express Pharma organised the Sikkim Pharma Summit: The Gateway to Growth in Gangtok. It also highlighted Sikkim’s rise as a pharma hub. Delegates representing the pharma fraternity who took part in the summit were also optimistic about the states’ initiative in pulling in many pharma companies despite the odds which the state faces.

So what are the factors luring the pharma players to this state? Let’s examine in detail

Creating a conducive business environment