ISAS Working Papers

The drugs and pharmaceutical industry has an important place in the Indian economy due to its positive technological spillovers to other sectors of the economy. The industry grew at 7.2 percent and contributed 1.3 percent to the gross domestic product in 2004. It recorded US$4 billion in domestic sales (about 1.5 percent of the global pharmaceutical sales) and over US$3 billion in exports in 2003-04 (Government of India, Economic Survey, 2004-05). Thus, the pharmaceutical industry is a sun-rise industry with vast opportunities for both the domestic and foreign players. With the changes in the regulatory environment regarding patent laws, the spotlight is now on India for contract research, joint ventures and alliances.