Indian Drug Industry Case Study

India’s drug industry has changed dramatically over the past thirty years. Their drug industry was almost nonexistent in the 1970’s. Today India is a top provider of pharmaceuticals to the world and India’s industry provides over 90% of their country’s drug needs. Globally the Indian industry is fourth overall in volume, and ranks thirteenth in value. Combined these ranks put the Indian market very near the top. This success is due to India’s government implementing new rules for the industry, forcing patent recognition, and respecting intellectual property rights of pharmaceuticals. India signed the World Trade Organization agreement and is bound to respect these rules. Since engaging in legal production of pharmaceuticals, the Indian industry has been explosive. India knows the importance of intellectual property rights and how violations can cripple their industry. When India was producing drugs and violating patents, they could not interest investors. The generic brand drugs that they were allowed to produce, due to expired patents, did not generate enough money for their industry to thrive. India knew that they needed to change their ways to become successful. India’s expanding drug industry has also proved to provide more to the country than just revenue. The trickle down effects include increases in Indian economic, political, and social aspects. The rise of the industry has drove the interest for local start-ups and inspired further investing in the industry. These start-ups creating facilities are discovering and producing new pharmaceuticals. With the increase demand for India’s pharmaceuticals, the country has been pushing for more education related to the pharmaceutical industry, creating more talent within the country. Indian universities are expanding their programs related to manufacturing and development of pharmaceuticals. India’s growth in university enrollment has increased three fold, compared to the United States and China with a much slower growth from 1999 to 2009. Their industry is growing vastly and can only be expected to continue growing. There are a lot of winners in India, and only a few losers. India as a country is a winner, as well as the people of India. This vast growth created thousands of jobs for the country and is creating even more. The increased revenue is allowing the Indian government to fund other needed areas. The community around the industry is benefiting from this growth and thriving. Producing drugs in India is cheaper than in the United States and it is allowing pharmaceutical companies to use the higher profit margins to expand their research and development funding. India’s growth is producing many winners. India’s industry is working well with United States pharmaceutical companies, and as the United States companies succeed, such as Pfizer, so will India’s industry. Pfizer has shown strong financial results in the past five years and is looking even stronger within the last two years. The continued …show more content…
They grew through new drug launches, new drug filings, and expanded clinical trials. The generic market continues to grow and become more profitable. India’s higher-income population is expanding as well as their healthcare industry. India did not halt its production of generic brand products, instead they expanded it, generic drugs are expected to be an even bigger part of the market in the upcoming years and India is prepared to take advantage of the situation. India is becoming almost self-sufficient in production and is continuing to prove it can succeed in the …show more content…
India has gained an advantage on the market by a large educated work force, low wages, and the English language spreading across India. India utilizing the English language has been a huge advantage and is a big reason why Western companies choose India over other countries such as China. And for foreign investors it is easier to do business in English than other languages. Knowledge of the English language has helped India comply with regulatory agencies in the United States as well as the European Union. India’s acceptance of the English language has enabled them to provide strong legal framework and solid financial markets. English has also provided India with a skilled workforce and one that is motivated to work hard. India’s pharmaceutical productions are almost half of Western nations and research and development costs are less than fifteen percent of Western costs. These advantages make India a very dangerous competitor to the