| Amongst all the countries that fall under the | | | | - Another important factor that is responsible for |
| category of developing countries, Indian | | | | attracting foreign investments in the Indian |
| pharmaceutical industry is one of the biggest and | | | | pharmaceutical sector is the increasing balance of |
| the most advanced. This industry has been a | | | | trade in the pharma sector. |
| boon to the Indian economy. It provides | | | | - India's fast growing biotech industry, which |
| employment to a huge number of people and | | | | offers great potential in the international market, |
| ensures that vital drugs are made available to the | | | | also has contributed in making the pharma sector |
| huge population of India at affordable rates. | | | | in India an attractive industry to make |
| The drugs and pharmaceutical industry plays a | | | | investments. |
| pivotal role in the economic development of India. | | | | - Besides the presence of different systems of |
| Being a very intense knowledge-based industry, it | | | | medicines, such as Siddha, Naturopahy, Ayurveda, |
| offers innumerable business opportunities for | | | | Homeopathy apart from its strengths in |
| investors worldwide. Indian pharmaceutical exports | | | | manufacturing makes the Indian pharmaceutical |
| accounts for export to more than 200 countries | | | | industry an attractive industry to invest in. |
| around the world. The annual turnover of | | | | Due to all these advantageous factors, India is |
| pharmaceutical products contributes to about US$ | | | | recognized as one of the leading players in |
| 17 billion. In recent times, the Indian pharmaceutical | | | | pharmaceuticals in the global market. |
| industry has shown tremendous growth in terms | | | | The Indian pharmaceutical industry got a major |
| of infrastructure development, product usage, and | | | | boost with the signing of the General Agreement |
| technology. | | | | on Tariffs and Trade in 2005. This agreement |
| The pharmaceutical industry in India provides | | | | helped India to recognize global patents. After |
| several opportunities for investments and trade | | | | recognizing global patents, the Indian |
| due to the following factors: | | | | pharmaceutical market has become a sought-out |
| - With respect to India's huge population it is an | | | | destination for foreign players to invest in the |
| excellent center for clinical trials. | | | | sector. Also, investment in pharmaceutical industry |
| - India has efficient and cost-effective sources for | | | | has vastly increased over the years since the |
| getting a hold of generic drugs, especially the | | | | industrial licensing for a huge number of drugs and |
| drugs that are going off their patents in the | | | | pharmaceutical products has been abolished. |
| coming years. | | | | The Department of Chemicals and Petrochemicals, |
| - India has abundant manpower with strong | | | | which falls under the Ministry of Chemicals and |
| scientific, technical knowledge. | | | | Fertilizers, overlooks all the planning, developing, |
| - The cost involved for research and | | | | and regulating of the pharmaceutical industry in |
| development is very low. | | | | India. The ministry permits up to 100% foreign |
| - The production cost of quality drugs in bulk | | | | investment provided that the investor adheres to |
| quantities is very low. | | | | certain stipulations laid down by the government. |
| - India houses excellent laboratories with | | | | The ministry allows for exemption from price |
| world-class facilities. It has laboratories that | | | | control for a period of 15 years if the product is |
| specialize in process development and the | | | | patented under the Indian Patent Act and is |
| development of cost-efficient drug manufacturing | | | | developed through indigenous R&D in the |
| technology. | | | | country. |
| - India is self-reliant in terms of the production of | | | | Thus, with such remarkable initiative of the Indian |
| bulk drugs. Almost 70% of the requirements for | | | | government, the Indian prospective |
| the formulation of drugs is available within the | | | | pharmaceutical industry looks extremely positive |
| country itself. | | | | for attracting more foreign investments. |