India’s Pharmaceutical Industry on Course for Globalization: A Review

Abstract

Pharmaceutical consumption in India is expected to grow substantially over the next five years, driven by a rise in disposable income, an ageing population and improving medical infrastructure. These growth driver shave led to India becoming a major emerging location for global pharma companies, however ongoing problems such as frequent power cuts, an insufficient transport infrastructure and gaps in the new patent regime may slowdown the sector’s development. The pharmaceutical industry in India is going through a major shift in its business model in the last few years in order to get ready for a product patent regime from 2005 onwards This shift in the model has become necessary due to the earlier process patent regime put in place since 1972 by the Government of India. This was done deliberately to promote and encourage the domestic health care industry in producing cheap and affordable drugs. As prior to this the Indian pharmaceutical sector was completely dominated by multinational companies (MNCs).