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An Overview of the Indian Pharmaceutical Sector

In: Performance of Pharmaceutical Companies in India

Author

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  • Mainak Mazumdar

    (Centre De Sciences Humaines (CSH))

Abstract

This chapter presents an overview of the Indian Pharmaceutical Industry and traces its evolution and growth. From the review of policies and analysis of the aggregate data, we conclude that the Patent Act of 1970 and the knowledge spill-over from public sector units provided the necessary impetus for the growth of the industry. Presently, the industry is highly competitive with the top 20 firms capturing about 80 % of the market. However, contrary to conventional economic wisdom, evidence also suggests that it is one of the most profitable industries. The coexistence of low concentration and high profit earning is observed due to firm specific factors like its efficiency, returns from R&D and marketing related outlays and earnings from the global market.

Suggested Citation

  • Mainak Mazumdar, 2013. "An Overview of the Indian Pharmaceutical Sector," Contributions to Economics, in: Performance of Pharmaceutical Companies in India, edition 127, chapter 0, pages 17-44, Springer.
    • Handle: RePEc:spr:conchp:978-3-7908-2876-4_2
    DOI: 10.1007/978-3-7908-2876-4_2
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    Cited by:

    1. Manoj Pant & Devyani Pande, 2017. "India-Pakistan Trade: An Analysis of the Pharmaceutical Sector," Working Papers id:12262, eSocialSciences.

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