Foreign investment brought in competition within the industry compelling the domestic players to make improvements in operation, reduce cost of production and increase quality. Indian pharmaceutical industry has shown tremendous progress in terms of infrastructure development, technology base and range of production. Indeed, it is this intellectual capability of India, demonstrated through R&D, that has found acceptance of India in the world markets. Several companies abroad are now keen on entering into strategic alliances so that they can benefit through India's expertise.

The Research and Development work carried out in India is of world class standards and is now attracting German biotech companies who are keen on setting up joint ventures and R&D facilities."

Dr.Manmohan Singh ushered in liberalization in 1991 when the country was facing burgeoning debt and inability to service it. This policy of the Indian Government brought in competition from foreign countries in the domestic markets. He encouraged foreign companies to enter into India by removing the license raj, forcing Indian companies to shrug off complacency. Foreign investment brought in competition within the industry compelling the domestic players to make improvements in operation, reduce cost of production and increase quality. This led to a healthy development of competitive advantage through improvement in the value chain. Thus, competition increases efficiency of companies. Indian companies had to gear up to remain sustainable.

The country spends about 6% of GDP on health. However, the private spending is far greater than the public spending. Our public spending on health is less than 1% of GDP. The common minimum program targets a minimum of at least 2% GDP on public spending on health.

Pharmaceutical Industry, Intellectual Capital, Foreign Investment, Indian Pharmaceutical Industry, Research and Development, Indian Companies, GDP Growth, Economic Reform Policies, Foreign Direct Investment, FDI, National Pharmaceutical Pricing Authority , NPPA, World Health Organization, WHO, Natural Chemical Entities, NCE, Indian Patent Act, Indian Pharmaceutical Products.