With approximately 4,000 units producing a range of allopathic, homoeopathic, ayurvedic, and cosmetic drugs, Gujarat has cemented its position as a top pharma hub. However, government sources reveal a troubling trend: over the past three years, illegal operations manufacturing psychotropic substances have allegedly mushroomed amid the state's legitimate facilities. 

This development comes as the sector experiences increased investment and competition, leading to rising concerns over the potential targeting of small and emerging entrepreneurs in the industry.

In just the past year, officials have seized at least six facilities involved in making illicit drugs including at Surat, Ankleshwar and Ahmedabad. 

A seizure in Ahmedabad’s Changodar area yielded ₹14.72 lakh worth of banned Tramadol, which is a strong habit-forming painkiller often used as a recreational drug. More recently, Surat saw a spate of raids and seizures at units producing the party drug mephedrone (MD), as well as busts of manufacturers and peddlers including engineers and an ice cream vendor. In one of the most significant busts, a factory in Sanand was raided, leading to the seizure of thousands of kilograms of illegal drugs. The operation also triggered controversy with the transfer of a senior Narcotics Control Bureau (NCB) official. 

High-level sources within the Food and Drug Control Administration (FDCA), which regulates pharmaceutical units, say that many illegal operations mask their activities by including the word “pharma” in their names.

Even as law enforcement agencies such as the NCB and Central Bureau of Investigation (CBI) continue to crack down on narcotics, Gujarat is also grappling with the proliferation of so-called “ayurvedic syrups”. Stimulus measures meant to promote ayurveda are often used by criminals to bypass the state’s stringent Prohibition laws. The alcohol content in these largely unregulated products matches and often exceeds that of traditional liquors. The easy availability of such “syrups” came to the fore after chemical-laced liquor led to several deaths in 2022.  

India’s pharma industry is already facing stiff competition from Bangladesh and Pakistan due to inconsistent policies affecting exports and foreign exchange. The spread of illegal units poses additional challenges for Gujarat, threatening the state's reputation as well as public health. Authorities will have to find a way to maintain Gujarat's status as a pharmaceutical powerhouse while also effectively combating the spread of illicit operations.

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