India is often referred to as the “pharmacy of the world,” particularly for its role in manufacturing and supplying affordable generic drugs. The country’s pharmaceutical industry is a global leader in producing generic medications, contributing significantly to global healthcare by making essential medicines accessible and affordable to countries across the world.

 However, it also faces several challenges and criticisms. The Indian pharmaceutical industry heavily relies on imports for its raw materials, especially Active Pharmaceutical Ingredients (APIs), predominantly from countries like China. This overdependence on imports for critical raw materials poses a risk of supply chain disruptions, as seen during the initial stages of the COVID-19 pandemic. The industry has also faced criticism and challenges related to intellectual property rights, including patent infringements, frivolous oppositions, and disputes with multinational pharmaceutical companies. This has led to a perception of a weak Intellectual Property Rights (IPR) regime, impacting India’s relationship with global markets and investors.

On innovation front, the observation about India’s contribution to New Chemical Entities (NCEs) highlights a significant challenge and irony within the industry, given its global stature as a leading producer of generic medicines. The Indian pharmaceutical sector is renowned worldwide for its capability in generic drug manufacturing, offering affordable medicines across the globe. However, when it comes to drug discovery, including the development of NCEs, India’s track record is relatively modest, especially in comparison to its achievements in generics. Ultimately, Indian pharmaceutical industry has still opted ‘Status Quo’ in innovation front despite having best brains and best Research and Development (R&D) institutions.