Building India’s Next Global Healthcare Manufacturing Hub

 

Introduction

India’s pharmaceutical and medical device sectors are at a decisive inflection point, driven by rising domestic demand, global supply chain realignments and a growing emphasis on self-reliance in healthcare manufacturing. Recognising this opportunity, the Government of Uttar Pradesh has introduced the Uttar Pradesh Pharmaceutical & Medical Device Industry Policy, 2023, a comprehensive framework aimed at positioning the state as a preferred destination for pharmaceutical and medical device investments.

With a vast consumer base, a strong industrial foundation, improving logistics infrastructure, and policy-driven ease of doing business, Uttar Pradesh leverages both scale and structure to create a globally competitive healthcare manufacturing ecosystem.

Policy at a Glance

Policy Name: Uttar Pradesh Pharmaceutical & Medical Device Industry Policy, 2023

Applicable To:

  • Pharmaceutical manufacturing units
  • Medical device manufacturing units
  • Pharma and medical device parks (developers and anchor units)

Coverage: Greenfield projects and eligible brownfield expansions

Nodal Agencies: Invest UP, Uttar Pradesh State Industrial Development Authority (UPSIDA) and concerned line departments.

The policy addresses the entire value chain, including manufacturing, research and development, quality compliance, infrastructure creation and market access.

Vision and Objectives of the Policy

The policy is anchored in a clear vision: to establish Uttar Pradesh as a nationally and globally competitive hub for pharmaceuticals and medical devices.

Key Objectives:

  • Strengthen local manufacturing capacity in pharmaceuticals and medical devices
  • Promote investment-led industrial growth
  • Encourage research, innovation and clinical excellence
  • Reduce import dependence on critical healthcare products
  • Generate large-scale skilled employment
  • Support exports and global market integration

Scope of the Policy

Pharmaceutical Sector

The policy supports manufacturing across a broad pharmaceutical spectrum, including:

  • Formulations
  • Bulk drugs and APIs
  • Biopharmaceuticals
  • Vaccines
  • Nutraceuticals and healthcare supplements

Medical Devices Sector

Coverage extends to:

  • Medical devices and equipment
  • Diagnostic devices and imaging equipment
  • Surgical instruments
  • Disposables and consumables
  • Electronic and electro-medical devices

This wide scope enables participation from both traditional pharmaceutical manufacturers and advanced med-tech innovators.

 

Why Uttar Pradesh? The Strategic Advantage

Uttar Pradesh offers a strong combination of scale, connectivity, skilled talent and governance reforms, making it well positioned for healthcare manufacturing investments.

Key State-Level Advantages:

  • India’s largest population base, ensuring strong domestic demand
  • Strategic connectivity through expressways, rail networks and international airports
  • Proximity to the National Capital Region, a major pharma and med-tech market
  • Expanding industrial land bank through UPSIDA
  • Robust single-window clearance mechanism through Invest UP
  • Growing ecosystem of universities, medical colleges and research institutions

Together, these factors significantly reduce cost, risk and time to market for investors.

Core Incentives for Manufacturing Units

The policy offers a comprehensive fiscal incentive framework aimed at improving project viability and lowering entry barriers.

Capital Subsidy

Eligible units receive capital investment subsidies linked to:

  • Investment in plant and machinery
  • District category and project scale

This encourages capital-intensive manufacturing, particularly in high-value segments.

Interest Subsidy

To reduce financing costs, the policy provides interest subsidies on:

  • Term loans for plant and machinery
  • Working capital loans, as applicable

Stamp Duty and Electricity Duty Exemptions

  • 100% exemption on stamp duty for land purchase or lease
  • 100% exemption on electricity duty for a defined period

These incentives substantially reduce both initial and operational costs.

R&D, Innovation and Clinical Research Support

Recognising that healthcare manufacturing is innovation-driven, the policy places strong emphasis on research and development.

 

Key Support Measures:

  • Financial assistance for in-house R&D facilities
  • Support for contract and sponsored research
  • Assistance for clinical trials and product validation
  • Promotion of industry–academia collaboration

This positions Uttar Pradesh as an attractive destination not only for manufacturing but also for innovation-led enterprises.

IPR, Quality and Certification Support

Global competitiveness in pharmaceuticals and medical devices depends on quality standards and intellectual property protection.

Policy Support Includes:

  • Reimbursement for domestic and international patent filing
  • Assistance for quality certifications such as:
  • ISO
  • BIS
  • WHO-GMP
  • CE and other global standards

These measures reduce compliance costs and facilitate faster access to international markets.

Environmental and Sustainability Support

The policy integrates environmental responsibility into industrial development.

Key Provisions:

  • Support for common effluent treatment plants (CETPs)
  • Assistance for waste management infrastructure
  • Incentives for clean fuel usage and efficient boilers
  • Promotion of sustainable manufacturing practices

These provisions ensure regulatory compliance while supporting long-term sustainability.

Skill Development and Employment Support

To ensure availability of industry-ready manpower, the policy supports:

  • Training programmes aligned with pharma and medical device requirements
  • Industry-driven skill development initiatives
  • Employment generation through large manufacturing clusters

This aligns with the state’s broader skilling and employment objectives.

Pharma and Medical Device Parks: Infrastructure at Scale

A key pillar of the policy is the development of world-class pharmaceutical and medical device parks.

Types of Parks Supported:

  • Horizontal Pharma Parks:Multiple manufacturers with shared infrastructure
  • Vertical Pharma Parks:Integrated facilities anchored by large units and supported by vendor ecosystems

Support for Park Developers:

  • Capital assistance for common infrastructure
  • CETPs, testing laboratories and logistics facilities
  • Plug-&-play manufacturing infrastructure

This cluster-based approach reduces costs, enhances compliance, and accelerates production timelines.

Flagship Projects: Investment Anchors in Uttar Pradesh

Lalitpur Bulk Drug and Pharma Park

  • Envisioned as a large-scale pharmaceutical manufacturing hub
  • Designed with shared infrastructure and Plug-&-play facilities
  • Focused on APIs, bulk drugs and large manufacturing units
  • Strategically positioned to attract domestic and global investors

YEIDA Medical Device Park (Sector 28)

  • Dedicated medical device manufacturing zone near NCR
  • Excellent connectivity to airports and logistics hubs
  • Ideal for high-end med-tech and diagnostic companies
  • Planned ecosystem with testing, certification and R&D facilities

These flagship projects serve as anchor ecosystems, reinforcing Uttar Pradesh’s long-term commitment to healthcare manufacturing.

 

Ease of Doing Business and Investor Facilitation

Uttar Pradesh has institutionalised investor facilitation to ensure smooth project execution.

Key Features:

  • Single-window clearance through Invest UP
  • Time-bound approvals
  • End-to-end handholding support
  • Land allotment through UPSIDA
  • Dedicated facilitation for mega and anchor investors

This governance-led approach minimises delays and enhances investor confidence.

Conclusion: A Policy Designed for Scale, Speed and Sustainability

The Uttar Pradesh Pharmaceutical & Medical Device Industry Policy, 2023 is more than an incentive framework—it is a strategic blueprint for building a globally competitive healthcare manufacturing ecosystem.

By combining fiscal incentives, infrastructure-led development, R&D support, quality compliance mechanisms and investor-friendly governance, Uttar Pradesh positions itself as a future-ready destination for pharmaceutical and medical device investments.

For manufacturers, innovators and global healthcare companies, Uttar Pradesh offers a compelling proposition: scale with stability, growth with governance and innovation backed by infrastructure.