Could you discuss Telangana’s development since becoming India’s youngest state in 2014?

Telangana is a dynamic state, which has experienced tremendous growth since its formation in 2014. The state has achieved a Gross State Domestic Product (GSDP) growth rate of 10.1% in 2016 to 2017, which is higher than the national average. Additionally, the share of Telangana’s economy in the national GDP has increased by seven basis points during the same period. One of the factors contributing to this growth is the state’s new industrial policy, which offers time-bound clearances within 15 days, providing transparency and efficiency for investors. As a result, over 4,500 units have been approved, with about half already in commercial production. Telangana’s commitment to transparency and efficiency has earned it the distinction of being consistently ranked number one on the World Bank’s EODB ranking of all Indian states. The state’s capital city, Hyderabad, has been ranked as the top Indian city on Mercer’s Quality of Living index since 2014. Furthermore, some of the most valuable companies in the world, such as Google, Apple, Microsoft, and Facebook, have set up their largest technology development centers in Hyderabad, alongside illustrious names such as Boeing in the aerospace sector and top companies in the pharmaceuticals and life sciences sectors.

How diverse is Telangana’s economy, and how significant is the life sciences industry in driving development and economic impact?

Telangana has been at the forefront of India’s pharmaceutical and biotechnology industries, with the state home to the country’s largest systematically-developed life sciences cluster, the Genome Valley, housing around 200 companies, including international players. Furthermore, Telangana has a significant presence in the pharmaceutical sector, with nearly 200 bulk drug and intermediate manufacturer units and 400 formulation units. Nearly half of India’s 169 U.S. FDA approved facilities are located in Telangana. Additionally, 30% of the medicines exported to the United States from India are made in Telangana, with total exports amounting to an estimated Rs. 32,600 crores per annum out of the total production of Rs. 65,200 crores per annum. Therefore, Hyderabad has come to be known as the “Pharma Capital of India” and is home to several world-renowned pharmaceutical companies. The life sciences sector in the Hyderabad cluster overall achieved a Compound Annual Growth Rate (CAGR) of 13.5%, with exports growing by 17.3% since 2010, the highest among the three major pharmaceutical locations of India: Hyderabad, Bangalore in Karnataka, and Mumbai-Pune in Maharashtra.

What can you tell us about Telangana’s recently announced life sciences infrastructure fund?

Telangana has announced the establishment of the Life Sciences Infrastructure Fund, with an initial corpus of about Rs. 1000 crores. The fund is the first of its kind in the country, dedicated to the creation of specialized infrastructure, including sophisticated modular plug-and-play infrastructure, for the life sciences industry. The government has partnered with Cerestra Advisors, a private equity firm specializing in life sciences and education infrastructure, to create the fund. With the growing preference of global life sciences companies for asset-light business models and long-term leases for their facilities, the government believes that the fund will be a game-changer and accelerate the growth of the life sciences sector in the country.

Can you describe the government’s approach to developing the state’s workforce and initiatives such as the Telangana Academy for Skill and Knowledge (TASK)?

Telangana is home to several renowned educational and research institutions, and the government recognizes the need to align the curriculum with the requirements of the industry. To this end, the state’s Skill Development Policy is being formulated to increase the employability of the youth. The Telangana Academy for Skill and Knowledge (TASK) is a not-for-profit institute of the Government of Telangana that aims to offer quality human resources and services to the industry. TASK focuses on several segments, including the life sciences industry, and has already launched several programs.

What are the government’s plans for further development of the life sciences sector in Telangana?

The government of Telangana is taking significant strides to promote the growth of the life sciences industry. One of the major upcoming projects is the Pharma City, which is spread across 14,000 acres and is designed to be of international standards with its emphasis on bulk drugs and formulations. This first-of-its-kind Pharma City will have features like Zero Liquid Discharge, a common effluent treatment facility, regulatory enclave, 24/7 water and power supply, dedicated land for social infrastructure like housing, entertainment and commerce. The cluster promises to be a highly environment-friendly ecosystem and will have N-block environmental clearance, making it easier for individual industries to set up units directly without having to seek separate clearances.

Furthermore, the government has launched a first-of-its-kind park for Medical Devices & Electronics, which will have a focus on medical innovations, R&D, and manufacturing. The overall ecosystem for the life sciences sector coupled with the government’s unmatched commitment to enabling ease, quality and cost of doing business, makes Telangana the most attractive and unmatchable destination for life sciences companies.

How will the government’s initiatives such as the Pharma City and the Medical Devices & Electronics park help the state’s life sciences companies to become more cost-competitive in the global market?

The government of Telangana recognizes the importance of providing world-class infrastructure and facilities to attract global life sciences companies. The Pharma City and the Medical Devices & Electronics park will provide specialized and sophisticated infrastructure for the life sciences industry. The Pharma City, for instance, will have features like Zero Liquid Discharge, a common effluent treatment facility, and a regulatory enclave, which will make the ecosystem highly environment-friendly. In addition, the government’s commitment to enabling ease, quality, and cost of doing business in Telangana will further help the state’s life sciences companies to become more cost-competitive in the global market.