The Indian pharmaceutical industry is breaking new grounds in medicine research across the world with its low cost and high quality products. According to Richard Gerster: "The Indian pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent."

Currently, the Indian pharmaceutical industry is one of the world's largest and most developed. It is ranked 4th in terms of volume and 13th in value terms in the world. Today, India accounts for 8 percent of global production and 2 percent of world markets in pharmaceuticals. Indian pharmaceutical companies, such as Dr. Reddy's, Ranbaxy, Cipla, Nicholas Piramal, Wockhardt, Orchid Chemicals, Biocon, maintain high standards of productivity, quality of products, and spend a lot on R&D activities.

The industry has been witnessing remarkable growth in recent years, and is comparatively immune from the global economic meltdown, thanks to rising consumption levels in the country and robust demand from export markets. They now produce bulk drugs belonging to all major therapeutic groups requiring complicated manufacturing processes. Indian pharma companies have also developed excellent GMP (Good Manufacturing Practices) compliant facilities for the production of different dosage forms.

Indian companies can develop cost-effective technologies in the shortest possible time for drug intermediates and bulk activities without compromising on quality. This is possible through the country's strengths in organic chemicals' synthesis and process engineering. India is today recognized as one of the leading global players in pharmaceuticals. Europe accounts for the highest share of over 23% of Indian Pharma exports followed by North America and Asia. Internationally recognized as amongst the lowest-cost-producers of drugs, India holds fourth position in terms of volume and thirteenth position in terms of value of production in pharmaceuticals.

Key strengths of Indian pharma companies lie in strong manufacturing base, cost competitiveness, network of laboratories and R&D infrastructure, highly trained pool of scientists and professionals, world-class quality products, strong marketing and distribution network, strong process development skills, potential ground for clinical trials, fast growing health care industry, rich biodiversity, highest Quality approvals from USFDA, EDQM, MHRA etc, strong in Indian medicine systems of Ayurvedic, Homoepathy, Unani, Siddha and Herbals medicines and an excellent center for clinical trials.

More than 10 Indian pharma companies working towards new drug discovery in the areas of infections, metabolic disorders such as diabetes, inflammation, respiratory, obesity & cancer. They have also increased their R&D spending to over 5 percent of their respective sales turnovers.

Introduction of Product Patent for Pharmaceuticals is an important feature for Indian Pharma R&D scenario that has boosted the confidence of MNC pharma companies in India. A number of western Pharma companies have already R&D collaborations with Indian Pharma companies in the field of NDDR. Some Indian companies have also got US-FDA approvals for their new molecules as Innovative New Drugs (lND).

Western Pharma companies have recognized the vast opportunities in India as a R&D outsourcing destination due to low cost scientific manpower, excellent infrastructure, and many of them have already set up independent R&D centres in the country. A number of multinational pharma companies are looking to outsource manufacturing from Indian companies due to low costs. Many Indian companies have made their plants cGMP compliant (Good Manufacturing Practices as directed and regulated by FDA and EU agencies) and India is also having the largest number of USFDA-approved plants outside USA.