An Overview of the Indian Pharmaceutical Sector

Part of the Contributions to Economics book series (CE)


This chapter presents an overview of the Indian Pharmaceutical Industry and traces its evolution and growth. From the review of policies and analysis of the aggregate data, we conclude that the Patent Act of 1970 and the knowledge spill-over from public sector units provided the necessary impetus for the growth of the industry. Presently, the industry is highly competitive with the top 20 firms capturing about 80 % of the market. However, contrary to conventional economic wisdom, evidence also suggests that it is one of the most profitable industries. The coexistence of low concentration and high profit earning is observed due to firm specific factors like its efficiency, returns from R&D and marketing related outlays and earnings from the global market.


Sales Volume Herfindahl Index Pharmaceutical Sector Bulk Drug Capital Intensity 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.Centre De Sciences Humaines (CSH)New DelhiIndia

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