Few tourists thronging Himachal Pradesh round the year know that Baddi, located on the Shivalik hills along the hill state’s border with Haryana, houses Asia’s biggest pharmaceutical hub. The small, industrial town that contributes around half of the state’s industrial revenue and employs a third of its industrial workforce, rose to prominence after then Prime Minister [late] Atal Bihari Vajpayee declared a special package for the pharma industry in the hill state in 2003.

The industrial hub of Baddi-Barotiwala-Nalagarh (BBN) that is spread across an area on average 23 km in length and 7 km in width, houses 2,200 industrial units, of which around 450 are related to the pharma industry. Residents and industrialists complain of rising inflation and cascading effects of the Russia-Ukraine War. It is here that the ruling BJP faces one of its toughest electoral challenges, in the Doon constituency. The industrial hub provides 3 lakh direct and indirect jobs.

Locally, the industry grapples with the problem of transportation. Baddi boasts Asia’s largest truck union, with over 10,000 truckers engaged in the business, all living within a radius of 20 km. With the union not allowing truckers from outside to service the area, industry bigwigs complain of monopoly by the union and higher transportation costs.

On Tuesday, Chief Minister Jai Ram Thakur, who was accompanying Paramjit Singh Pammi as he filed his nomination papers as BJP’s candidate from the Doon seat, underlined BBN’s importance and pointed out that the government will also take care of the interests of the truckers’ union.

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Local industry is looking forward to a long-awaited railway line, connecting Baddi to Chandigarh, that was recently approved after a wait lasting over 15 years. Of the 28 km stretch, nearly 25 km falls in BJP-ruled Haryana, with the remaining 3 km in Himachal Pradesh. The rail link is likely to cost over Rs 1,770 crore.

The president of the Baddi-Barotiwala-Nalagarh Industries Association, Rajender Guleria, said, “The rail link would benefit industry a lot, especially the export sector that currently has to go to the dry port in Ludhiana, incurring high transportation costs.”

Nalagarh-Baddi Truck Union president Jatinder Singh Thakur, concurred, saying, “Our business will grow if the railway line becomes operational.” He added, “There are no major issues. Only the opposition Congress is raising issues that don’t matter to us.” Thakur was present when the CM accompanied Pammi as he filed his nomination.

Another big problem in the BBN industrial belt is housing, especially for the managerial-level workforce, with most such employees travelling from Chandigarh and Panchkula daily. Guleria says the state government should provide infrastructure like basic amenities, roads, parks and housing for the workforce, as “these will have a multiplier effect on industrial growth in the region”.

Himachal Industries Minister Bikram Singh said out of four medical device parks and three bulk drug parks sanctioned in the country, one each has been sanctioned for the state, in Nalagarh and Una, respectively. “With the upcoming medical device park in Nalagarh, big industrial activity is set to begin in the state,” he told The Indian Express, adding that “at a global investors’ meet, investments of Rs 13,000 crore and Rs 22,000 crore were grounded in Himachal Pradesh. Defence-related industries are also coming up in the BBN area.”

Commenting on the end of the Centre’s special package for the state’s industry, Singh said, “The state government has provided a customised package to make land and electricity available at cheaper rates for industry.”

Asked if the special package moving to Jammu and Kashmir could hit industrial investments in Baddi, he said, “Although we haven’t got that package, industry people know they have a friendly environment here. I don’t think it [special package going to J&K] will have any impact here.”

On the upcoming railway link, the industries minister said, “It is not going to have an impact on the truck business.”

Commenting on the performance of his industry, Himachal Drug Manufacturer’s Association president, Dr Rajesh Gupta, said, “As per market size, the pharma industry is overall doing well.”

Currently, the road from Baddi to Nalagarh is a nightmare for commuters, with potholes and traffic snarls reducing speed to a crawl. Work on a four-lane road is in progress. Gupta said, “Let us see when we actually get to drive vehicles on the new road,” adding that connectivity to Baddi and Nalagarh would improve if two road projects—one connecting the Pinjore-Baddi road with the Panchkula-Pinjore road; the other connecting Siswan with Nalagarh—take shape.

Besides pharma, Baddi is a textile hub. That industry, too, is in the doldrums. Sources in Baddi’s textile industry said, “Inflation in the country and the Ukraine war has taken a toll on us.” A textile industry official remarked that festive purchases in 2022 was a fraction of what it was in pre-Covid times, adding, “There are no orders from Europe, given the energy crisis induced by the Russia-Ukraine war. To save for energy needs, Europe is not spending much on products like apparels.”