India is one of the largest producers of pharmaceutical, bulk drugs, medicines and raw materials in the world. There are several reasons for the enormous growth that this industry has experienced over the last twenty years; changes in government policies and the industrialisation of many Indian cities are just two of those reasons. The following article will take a quick look at some of the contributing factors to India’s rapid rise in this sector.

The first, and probably most important, reason for India’s growth in the pharmaceutical manufacturing industry is that the patent law enacted in 1972 (which only protected the names, not the ingredients of medicines) was changed in 2005; the law now protects the process as well as the name for a period of twenty years. This change prompted many overseas companies to set up production plants in India; most of these plants almost exclusively employ Indians, which has brought employment to many who were not previously employed.

Another reason India is such a major player in the pharmaceutical production industry is the government support that is offered to research and development of new products. The Indian government has set aside millions (at least) to be awarded to pharmaceutical companies.

One more reason that India has experienced such a growth in the pharmaceutical, bulk drugs, medicines and raw materials market is that there is a large availability of land for building production plants; some come from countries where building space is limited. The cost of building a new production plant in India is substantially lower than in many other countries.