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The state accounts for 40 per cent of the country's pharmaceuticals output. The US$ 5 billion Indian pharmaceutical industry in 2003 is expected to grow to US$ 25 billion by 2010, representing an annual growth rate of over 25 per cent.

Post 2005 major opportunities have emerged in the pharmaceutical sector, primarily in the areas of contract research, contract manufacturing and clinical trials. The state's competitive strengths in the sector include low costs, strong manufacturing base, well-developed laboratory and R&D infrastructure and a strong resource pool. The backward linkage with the well-developed chemicals and petrochemicals sector is an added advantage. The major players present in the state are GlaxoSmithkline, Johnson & Johnson, Novartis, Nicholas Piramal, Cipla and Wockhardt.