Why Telangana Now Wants to Move Away From Bulk Vaccine Manufacturing
By Shalini Mondal ·
With nearly 40% of India’s pharmaceutical production anchored in Hyderabad, often called the “Vaccine Hub of India,” Telangana is now preparing for its next phase of growth—moving beyond volume-led manufacturing and toward innovation, R&D, and advanced technologies.
Over the years, Hyderabad has created a vibrant ecosystem of digital GICs (global in-house centres) from global life sciences and healthcare players like Novartis, Amgen, Eli Lily, MSD, Johnson & Johnson, Sanofi, Bristol Myers Squibb, Roche, Bayer, and others.
Telangana is home to over 2,000 life sciences companies, as per the Telangana Next Gen Life Sciences Policy 2026 -2030.
Speaking on the sidelines of life sciences and biotech convention BioAsia 2026, Sridhar Babu Duddilla, Minister of Information Technology, Electronics and Communication, Industry and Commerce, and Legislative Affairs, Telangana government, outlined the state’s ambitious roadmap to transform Hyderabad into one of the world’s leading life sciences and deep-tech hubs by 2030.
“As of now, our life sciences industry is about a $100 billion ecosystem. We want to scale it to $250 billion,” he told AIM in an exclusive interaction. “That is our basic objective.”
At BioAsia 2026, the state government announced four major projects spanning global capability centres, advanced vaccine manufacturing, data science, and large-scale life sciences infrastructure.
Three Life Sciences Clusters by 2030
The government will create three dedicated life sciences clusters in Hyderabad by 2030, designed to support the sector’s shift up the value chain.
“Till now, we were focusing largely on volume manufacturing,” Sridhar Babu explained. “Now, we are concentrating on innovation-led growth.”
The clusters will prioritise high-value and niche segments such as bio-manufacturing, biologics, cell and gene therapy, and precision fermentation—areas that significantly enhance economic value and global competitiveness.
“These focus areas add tremendous value to the ecosystem we are building,” the minister added.
One of the most significant departures in Telangana’s life sciences policy is its approach to research and development, which used to focus on pharmaceutical manufacturing. Now, the focus is on research and development.
“This is the first life sciences policy in India where we have literally treated R&D as an industrial enterprise,” Sridhar Babu explained. “That means incentives and subsidies available to industry will also be extended to R&D institutions.”
The move aims to reverse India’s long-standing R&D deficit by encouraging scientists, universities, and research centres to actively participate in commercial innovation. While India’s global ranking in scientific publications has jumped from 7th to 3rd, according to the National Science Foundation’s Science & Engineering Indicators, the country still spends only around 0.6% of its GDP on research,
“If R&D institutions are not encouraged or given incentives, nobody will be interested unless they have a personal inclination,” Sridhar Babul noted. “This policy will encourage scientists to stay put, build institutions, and develop value-laden products for the future.”
Universities and academic institutions, including those with strong biotechnology and chemistry departments, are expected to benefit through incubation centres and industry-aligned research platforms.
Offering a policy perspective, Jitendra Kumar, Managing Director of Biotechnology Industry Research Assistance Council (BIRAC), laid out the scale of India’s transformation in a panel discussion.
“In 2014, we had fewer than 500 biotech startups. Today, we have nearly 10,000,” he said, noting that India’s bioeconomy has grown from under $50 billion to $167.5 billion.
He called the newly launched ₹1-lakh-crore Research, Development and Innovation Fund a potential game-changer. “This funding is very timely… we can now take equity, provide hybrid structures, and support companies beyond the startup stage.”
Regulatory reform, he acknowledged, remains the toughest hurdle—but it is finally being addressed through regulatory sandboxes and direct engagement with the highest levels of government.
Clinical Trials are an Untapped Advantage
From a clinical development lens, Nataraj Kalyanaraman, VP and Head of Drug Development, Bristol Myers Squibb, argued at a panel discussion that India has everything it needs—except velocity.
“Unless you have human data, it’s not going to de-risk the asset,” he said. With India’s patient diversity and clinical talent, faster trials could dramatically raise the global value of Indian innovation. “Once you have clinical proof of concept, it opens up investment from anywhere in the world.”
Supporting MSMEs and biotech startups is another central pillar of the policy. Telangana plans to use a dedicated life sciences platform to incubate both early-stage and large startups, enabling collaboration and value-network creation across the ecosystem.
“We want to incubate ideas, bring together startups of all sizes, and create a strong value network,” Sridhar Babu said.
GCC Momentum: Targeting 100 New Centres
Hyderabad’s Global Capability Centre (GCC) momentum continues to build up. After adding around 75 GCCs last year, the state is aiming to cross 100 GCCs this year.
Siva Kumar Padmanabhan, MD, Head of Global Innovation & Technology Centre, AstraZeneca described how his organisation’s India GCC played a pivotal role in launching cell and gene therapy programmes. The company is a leader in precision medicine and developed a COVID-19 vaccine in partnership with Oxford University.
“The India GCC became the nerve centre—setting up data, AI, technology and supply chains for a completely new modality. For the first time, people could see how what they do directly connects to a patient being cured,” Padmanabhan said.
He also highlighted the creation of a global centre of excellence for virtual reality and digital twins, enabling patients to visualise clinical trial journeys in advance.
Recent additions include L’Oréal’s first-ever beauty tech GCC and Marriott’s global centre, highlighting diversification beyond traditional IT and engineering.
“Companies are coming because they find talent, infrastructure, and a strong digital ecosystem here,” the official said. “The environment is dynamic and aligned with global needs.”
From life sciences and deep-tech to AI, quantum computing, and GCCs, Telangana’s strategy reflects a clear shift toward innovation-driven, high-value growth.