Tuesday, October 25, 2016

Why Pharmaceutical Industry is largely located on the Western Coast of India

Pharmaceutical industry is a footloose industry (i.e it does not require specific local resources ) and hence it can occur wherever the industrial feasibility criteria are met. The preponderance of this industry in Western region may be explained due to a number of factors like -
Why Pharmaceutical Industry is largely located on the Western Coast of India

1. Proximity to ports (Kandla, Bhavnagar etc.) which facilitates easy export to Africa, Europe etc. Africa for long has been an important market for India’s Generic Drug Industry. India exports cheap life saving drugs to African nations. The ports also help to import raw materials required for the manufacturing of drugs.

2. Favorable State policy like ease of doing business, stable policies of state government (Gujarat, Maharashtra)

3. Proximity to petrochemical hubs near Gujarat Coast and Mumbai.

4. Easy availability of Capital ( The western part of India has traditionally been the hub of trade and Capital)

5. Historical factors include the spirit of entrepreneurship

Though the above factors explain the emergence of Pharmaceutical industries in western region, many of the factors may be found at other places across the country (Bangalore, NCR region etc.). So the Pharma industry is not just located at west but scattered across the country wherever economic considerations allow.

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