Dilemma to Dominance: Decoding the Evolution of the Indian Pharmaceutical Industry - A Case Study

Abstract

The Indian pharmaceutical industry has undergone a significant evolution, transitioning from a domestically-focused sector to a global powerhouse. Initially, Indian pharmaceutical companies primarily catered to domestic healthcare needs. However, with the implementation of economic reforms in the 1990s, the industry witnessed rapid growth and expanded into international markets. The Indian pharmaceutical industry has experienced a remarkable transformation, establishing itself as a global leader in the production and export of generic drugs. The industry has demonstrated superior growth performance, making it one of the fastest-growing sectors worldwide. Productivity levels and innovation play a significant role in determining competitiveness, and the Indian pharmaceutical industry has shown impressive capabilities in these areas. Government policies have been instrumental in driving the industry's self-sufficiency and internationalization. The establishment of public sector pharmaceutical enterprises and the introduction of intellectual property regulations, pricing control, and research and development (R&D) support have propelled the industry's growth. This case study aims to provide an in-depth analysis of the journey of the Indian pharmaceutical industry, exploring its growth, challenges, and the dilemma it faces in balancing innovation and affordability. By examining the sector's perspective, challenges, and identified dilemmas, this case study aims to equip readers with a comprehensive understanding of the industry. The case delves into the journey and challenges faced by the Indian pharmaceutical industry. It investigates the industry's growth, the perspective of Indian pharmaceutical companies, the challenges they encounter, and the identified dilemmas. The case also provides teaching notes and objectives to enhance the readers' knowledge and decision-making skills within the pharmaceutical industry.