How India has managed to keep the costs of generics medicine low?
The Indian pharmaceutical industry has seen a spectacular rise and has come a long way from being unknown after independence to making its presence felt at a global level.
India is known as ‘the pharmacy of the third world’ and is one of the largest producers of generic medicines globally.
It is a controversial issue, with big MNCs rallying for stringent patent laws, which as a result would lead to greater profits. But instead of all this, Indians, with their reverse engineering skills are able to manufacture drugs at an extremely low cost.
The overall cost of production in India is about 38%-42% of that in the US. This is because the manufacturing and installation cost in India is lower than what it is in the US.