The triad of government support for infrastructure, scientific talent and technology prowess has made Andhra Pradesh and Telangana attractive life sciences hubs. From pharmaceutical research to manufacture, biotech capabilities and medical devices innovation, the two states have several advantages to provide an enabling environment for innovation and excellence.
As formidable life sciences hubs, Telangana and Andhra Pradesh have a strong life sciences corridor, with API/bulk drugs parks: Pharma City, Genome Valley, advances digital health & green corridors. The two states are powerhouses complementing each other for global competition.
The proliferation of Global Capability Centres (GCCs) in Andhra Pradesh and Telangana, backed by substantial investments from global multinational corporations, clearly reflects the growing confidence in the region’s capabilities and talent ecosystem, said Telangana Minister for Information Technology, Electronics & Communications, Industry & Commerce and Legislative Affairs Duddilla Sridhar Babu.
Global pharma majors like Amgen, Bristol Myers Squibb, Bayer , Eli Lily, GSK, Sanofi, Medtronic and Sandoz with the recent investments coming up from HCA Healthcare, Inc., a Fortune 100 healthcare leader with a network of approximately 192 hospitals and 2,500 care sites across the United States and the United Kingdom, setting up its GCC in India, selecting Hyderabad as its strategic hub underscores the strong capabilities of the region and the increasing confidence global enterprises place in its ecosystem.
According to companies such as Dr. Reddy’s, Bharat Biotech, Aurobindo Pharma, Sai Life Sciences, and Laurus Labs, the region has enabled a robust ecosystem and world-class infrastructure, a cost-effective operating environment, streamlined regulatory processes, access to a large and diverse patient pool because of strong government initiatives and supportive policies that help in advancing digital transformation in the areas of research and manufacture.
Current scenario of life sciences
In an email interaction with Pharmabiz, Sachin Bhure, Partner and Managing Director, India Tenthpin Management Consultants view that Telangana and Andhra Pradesh are rapidly emerging as leading life sciences hubs in India, with Telangana taking a global lead in investment and innovation, while Andhra Pradesh is strengthening its manufacturing and R&D capabilities with respective governments’ vision and support. Lot of global Lifesciences companies are also investing in their global capability centres in these states to get best advantage of talent & ecosystem.
Visible trends
Focus on pharma, biotech industry and advanced therapies in Telangana and Andhra Pradesh is marked by rapid innovation, technology adoption, and robust investment growth. Both states are shifting from traditional manufacturing to becoming global hubs for research, digital health, and advanced therapies.
Telangana offers matured ecosystem supported by self-sustained clusters, apt policy frameworks, infrastructure support, and workforce development which is attracting large-scale investments in pharma, biotech, and digital health, said Bhure.
Andhra Pradesh is building infrastructure and offering strong incentives, dedicated life sciences parks in PPP model and strong education ecosystem, to attract pharma and MedTech manufacturing, with Visakhapatnam as the focal point.
While Telangana has emerged as a leading (Top 7) global Lifesciences cluster, with Hyderabad hosting over 2,000 companies, with over Rs 50,000 crore in investments since 2024, aiming to add Rs one lakh crore of new investments and five lakhs of more jobs. The focus is now on innovation, with investments in cell and gene therapy, digital health, AI-enabled diagnostics, and MedTech supports with state-of-the-art infrastructure like Genome Valley, MedTech Park and Green Pharma City & Pharma Villages, said Bhure.
Noting that Andhra Pradesh remains a powerhouse for bulk drugs and APIs, with major exports, Bhure noted that a growing emphasis on R&D, biosimilars, and collaborations between academia and industry prevails.
There are evident plans to expand the current ecosystem of JN Pharma city, Andra MedTech zone with additional one Mega and three mini-Lifesciences Park in PPP model. This will help leverage strategic proximity to ports for exports and integration with other cities with Lifesciences presence, said Bhure.
Both states are using AI, digital health platforms, and telemedicine to improve the patient outcomes and expand access to healthcare services. The governments are actively supporting startups, R&D, and skill development, with new initiatives like the Telangana Lifesciences University and industry-aligned policies: Next-Gen Lifesciences policy, Biotechnology Policy, said the Managing Director, India Tenthpin Management Consultants.
Hub for Global Capability Centres
Global Lifesciences companies are setting up Global Capability Centres (GCCs) here due to a combination of strategic advantages which includes: Telangana and Andhra Pradesh offering a large, skilled workforce and a thriving innovation ecosystem, attracting GCC setups.Both states provide significant incentives, including tax breaks, land/duty exemptions, and subsidized power, reducing operational costs for GCCs.
There is streamlined regulations, single-window clearances, and dedicated SEZs enable rapid project execution and compliance. Besides, there is world-class infrastructure and connectivity in cities like Hyderabad, Visakhapatnam, and Vijayawada support plug-and-play GCC deployments. Further, strong collaboration between academia, industry, and government foster innovation and continuous improvement in GCC operations.
On why Tenthpin Management Consultants, a global leader in Lifesciences consulting, identifies Hyderabad, Telangana to set up its office, Bhure said, “As a global leader in Lifesciences consulting, we chose Telangana, specifically Hyderabad due to a major hub for pharma, biotech, and API manufacturers. Hyderabad offers access to the largest congregation of Lifesciences professionals, making it ideal for talent acquisition and industry collaboration. It becomes also our natural choice to offer our services to Indian Lifesciences companies and also GCCs due to leadership presence, faster decision making and closure to client business needs.
Tenthpin is expanding its India footprint, aiming to double its team size across all locations within the next year, leveraging India’s talent pool for global delivery.
The company launched a Global Centre of Excellence for AI- driven innovation. Tenthpin AI Labs in Hyderabad is focusing on integrating AI with ERP systems and developing tailored solutions for Lifesciences clients. Tenthpin recently launched a Centre for Lifesciences Cloud Solutions in Pune, but Hyderabad remains the primary hub for AI innovation and digital transformation in the Lifesciences sector. These initiatives position Tenthpin as a key enabler of AI & digital transformation in India’s Lifesciences industry, with Hyderabad at the core of its strategy.
Challenges faced by life sciences regions
Rapidly growing and heavily invested life sciences regions like Telangana and Andhra Pradesh may face several challenges despite their momentum, said Bhure.
We see speed to market with apt technology adoption. With evolving technology, new norms and required investments often needs justified value, ROI and speed to market. Lot of
companies are in mid of decisional crisis regarding these, he stated.
Talent shortage, competition and retention is obvious with fast growth which has created a constant demand-supply gaps for highly skilled professionals in emerging areas like AI, genomics, cell therapy, and digital health.
Another the innovation ecosystem maturity. Here building a mature innovation ecosystem with deep industry-academia collaboration, robust R&D, venture funding, and startup support is an ongoing process that can lag behind growth expectations.
Also, regulatory complexity will be there. Navigating evolving regulatory frameworks, compliance requirements, and quality standards can be challenging for companies, especially startups and new GCCs aiming for quick market entry, said Bhure.
“All this growth will spur infrastructure strain. This is because rapid expansion can outpace the development of necessary physical infrastructure such as roads, power supply, and specialized facilities, impacting operational efficiency and future scaling.It is here Tenthpin is equipped and committed to support in this space, especially for the top four challenges with our expertise and experienced team,” said Bhure. |