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Why India is called as “Pharmacy of the World”?
  • a)
    India is the largest supplier of generic medicines with almost 85 per cent share in the global supply
  • b)
    India ranks second in the number of pharmaceutical research labs in the world
  • c)
    Foreign Direct Investment inflows in the Pharma sector are greater than in any other sector in India
  • d)
    Price competitiveness and good quality have made Indian medicine producers to be dominant players in the world market
Correct answer is option 'D'. Can you explain this answer?
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Why India is called as “Pharmacy of the World”?a)India is the largest...
India as the “Pharmacy of the World”

India has earned the nickname "Pharmacy of the World" due to its significant contribution to the global pharmaceutical industry. The country has emerged as a major player in the production and export of generic medicines. Several factors have contributed to India's dominance in the pharmaceutical sector.

Price Competitiveness and Good Quality

- Indian pharmaceutical manufacturers have gained a reputation for offering medicines at competitive prices without compromising on quality. This has made them preferred suppliers for many countries, especially those with limited healthcare budgets.
- The Indian government has implemented policies that promote the use of generic medicines, which are more affordable than branded alternatives. This has further boosted the demand for Indian pharmaceutical products.

Largest Supplier of Generic Medicines

- India is the largest supplier of generic medicines globally, with almost 85 percent share in the global supply. The country has a vast network of pharmaceutical companies, both large and small, that produce a wide range of generic drugs.
- The Indian pharmaceutical industry is known for its cost-effective manufacturing processes, which enable the production of high-quality generic medicines at affordable prices.

Foreign Direct Investment (FDI) Inflows

- The pharmaceutical sector in India has attracted significant foreign direct investment. FDI inflows in the pharma sector are greater than in any other sector in India. This reflects the confidence of international investors in the Indian pharmaceutical industry.
- The availability of skilled manpower, a robust regulatory framework, and a favorable business environment have made India an attractive destination for pharmaceutical companies.

Research and Development (R&D) Capabilities

- India ranks second in the number of pharmaceutical research labs in the world. The country has a strong focus on research and development, which has led to the development of new drugs and therapies.
- Indian pharmaceutical companies invest a significant portion of their revenue in R&D activities. This has helped them develop a portfolio of innovative medicines and expand their presence in the global market.

Conclusion

India's reputation as the "Pharmacy of the World" is a result of its large-scale production and export of generic medicines, price competitiveness, good quality, significant FDI inflows, and strong R&D capabilities. The country's pharmaceutical industry plays a crucial role in providing affordable healthcare solutions to people around the world.
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Why India is called as “Pharmacy of the World”?a)India is the largest...
  • Indian Pharmaceutical industry ranks third in the world in pharmaceutical production by volume. During 2020-21, total pharma export US$ 24.4 Bn against the total pharma import of US$7.0Bn, thereby generating trade surplus of US$17.5 Bn. India is the largest supplier of generic medicines with a 20 percent share in the global supply. So, Option (a) is not correct.
  • Medical Research is dominated by United States followed by United Kingdom and Germany. So, Option (b) is not correct.
  • Computer software and hardware sector attract the highest FDI in India. So, Option (c) is not correct.
  • Economic Survey 2021-22 pointed out that, Although price competitiveness and good quality have enabled homegrown medicine producers to be dominant players in the world market, thereby making the country the 'Pharmacy of the World, India is significantly dependent on the import of bulk drugs that are used in the formulation of medicines. So, Option (d) is correct.
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India is rushing headlong towards economic success and modernisation, counting on high- tech industries such as information technology and biotechnology to propel the nation to prosperity. India’s recent announcement that it would no longer produce unlicensed inexpensive generic pharmaceuticals bowed to the realities of the World Trade Organisation while at the same time challenging the domestic drug industry to compete with the multinational firms. Unfortunately, its weak higher education sector constitutes the Achilles heel of this strategy. India’s main competitors especially China but also Singapore, Taiwan, and South Korea are investing in large and differentiated higher education systems. They are providing access to large numbers of students at the bottom of the academic system while at the same time building some research based universities that are able to compete with the world’s best institutions. There are a small number of high quality institutions, departments, and centres that can form the basis of the quality sector in higher education. India Educates approximately 10 percent of Its young people in higher education compared with more than half in the major industrialized countries and 15 percent in China. Almost all of the world’s academic systems resemble a pyramid, with a small high quality tier at the top and massive sector at the bottom. India has a tiny top tier. None of its universities occupies a solid position at the top. A few of the best universities have some excellent departments and centres, and there are a small number of outstanding undergraduate colleges.What did India agree to do at the behest of the World Trade Organisation?

Growth through acquisitions and alliances has become a critical part of creating value for pharma and biotech manufacturers and their shareholders. However, companies and their investors may risk value destruction if they acquire rights to a drug that suddenly poses unanticipated safety risks for patients. Similarly, safety related compliance violations committed by an acquired company could significantly impair the ultimate value of the transaction and the reputation of the acquirer. The pace of deal making between pharma and biotech companies continued to accelerate in 2006, increasing 17% to about $ 18 billion. Pharma companies were typically the buyers, and the premiums they paid increased substantially as competition intensified, to secure access to novel drugs and biologics. The stakes increase everyday as competition pushes up prices and drives deal making to earlier development stages with greater uncertainty and less time to complete thorough due diligence—Q. Which of the following inference(s) is/are definitely true?

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Why India is called as “Pharmacy of the World”?a)India is the largest supplier of generic medicines with almost 85 per cent share in the global supplyb)India ranks second in the number of pharmaceutical research labs in the worldc)Foreign Direct Investment inflows in the Pharma sector are greater than in any other sector in Indiad)Price competitiveness and good quality have made Indian medicine producers to be dominant players in the world marketCorrect answer is option 'D'. Can you explain this answer?
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Why India is called as “Pharmacy of the World”?a)India is the largest supplier of generic medicines with almost 85 per cent share in the global supplyb)India ranks second in the number of pharmaceutical research labs in the worldc)Foreign Direct Investment inflows in the Pharma sector are greater than in any other sector in Indiad)Price competitiveness and good quality have made Indian medicine producers to be dominant players in the world marketCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Why India is called as “Pharmacy of the World”?a)India is the largest supplier of generic medicines with almost 85 per cent share in the global supplyb)India ranks second in the number of pharmaceutical research labs in the worldc)Foreign Direct Investment inflows in the Pharma sector are greater than in any other sector in Indiad)Price competitiveness and good quality have made Indian medicine producers to be dominant players in the world marketCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why India is called as “Pharmacy of the World”?a)India is the largest supplier of generic medicines with almost 85 per cent share in the global supplyb)India ranks second in the number of pharmaceutical research labs in the worldc)Foreign Direct Investment inflows in the Pharma sector are greater than in any other sector in Indiad)Price competitiveness and good quality have made Indian medicine producers to be dominant players in the world marketCorrect answer is option 'D'. Can you explain this answer?.
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