The story
Indore's pharma cluster began with small formulation units serving central India and grew as larger firms set up plants in and around Indore and Pithampur. The cluster formed a special purpose vehicle to build common testing and research facilities, and many units upgraded to WHO-GMP norms so they could export. Drugs and pharmaceuticals are now Madhya Pradesh's largest export item.
In numbers
The Indore pharma cluster had about 300 functional units, a turnover of Rs 3,200 crore, exports of Rs 120 crore and employment of 20,000.
Brief Industrial Profile of Indore District (MSME-DI, Ministry of MSME) · 2016About 105 units in the cluster had complied with GMP norms, and exports rose from Rs 19.3 crore to Rs 120 crore.
Brief Industrial Profile of Indore District (MSME-DI, Ministry of MSME) · 2016Drugs and pharmaceuticals were Madhya Pradesh's top export in FY 2025-26, at Rs 9,606.30 crore.
Madhya Pradesh: State Economy and Industries (IBEF) · 2026
Ways in for a newcomer
- Contract manufacturing and loan licensing for marketing companies
- Packaging supplies: blister foil, cartons, labels and bottles
- Testing, validation and regulatory documentation services
- Medicine distribution and stockist business
Problems the cluster faces
- Meeting WHO-GMP and export regulatory norms
- Technology upgradation and shared testing and R&D facilities
- Export marketing for small units
Businesses to start here
Medicinal Tablets Manufacturing Unit →Capsule Shells and Medicine Blister Foil →Ayurvedic Tablet Making →Ayurvedic Capsule Making →Medical Store (Retail Pharmacy) →