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Global competitiveness of Indian Pharmaceutical Industry: Trends and Strategies

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  • Jaya Prakash Pradhan

    (Institute for Studies in Industrial Development, New Delhi)

Abstract

What are the trends in the global competitiveness of the Indian pharmaceutical industry? Where does this industry stand when compared to global peers on pharmaceutical value-added, productivity, research and development and trade performance? What are the new strategies that Indian pharmaceutical companies are adopting to become global players? These questions are addressed in this paper. It is found that strategic government policies were the main factors that transformed the status of the Indian pharmaceutical industry from a mere importer and distributor of drugs and pharmaceuticals to an innovation-driven cost-effective producer of quality drugs. India emerged as one of the fast growing pharmaceutical industry in the world with growing trade surpluses and exports. However, there are certain limitations that the government policies need to address, like low productivity and R&D intensity. A host of competitive strategies, like greenfield direct investment, overseas acquisitions, strategic alliances and contract manufacturing have emerged as favourites to Indian pharmaceutical firms recently.

Suggested Citation

  • Jaya Prakash Pradhan, 2006. "Global competitiveness of Indian Pharmaceutical Industry: Trends and Strategies," Working Papers 095, Institute for Studies in Industrial Development (ISID).
    • Handle: RePEc:sid:wpaper:095
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    References listed on IDEAS

    as
    1. Lanjouw, J.O., 1997. "The Introduction of Pharmaceutical Product Patents in India: "Heartless Exploitation of the Poor and Suffering"?," Papers 775, Yale - Economic Growth Center.
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    Cited by:

    1. Subhrabaran Das & Ariful Hoque, 2023. "Firm-level productivity and its determinants in the Indian pharmaceutical industry," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(4), pages 439-459, December.
    2. Bhargavi Jayanthi & S.N.V. Sivakumar & Arunima Haldar, 2016. "Cross-border Acquisitions and Host Country Determinants: Evidence from Indian Pharmaceutical Companies," Global Business Review, International Management Institute, vol. 17(3), pages 684-699, June.
    3. Jaya Prakash Pradhan & Abhinav Alakshendra, 2006. "Overseas Acquisition Versus Greenfield Foreign Investment: Which Internationalization Strategy is better for Indian Pharmaceutical Enterprises?," Working Papers 097, Institute for Studies in Industrial Development (ISID).
    4. Mohammad Asim & Saboohi Nasim, 2022. "Modeling Enterprise Flexibility and Competitiveness for Indian Pharmaceutical Firms: A Qualitative Study," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(4), pages 551-571, December.
    5. Dinar Kale, 2012. "Innovative Capability Development In The Indian Pharmaceutical Industry," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 1-19.
    6. Balcet Giovanni & Bruschieri Silvia, 2009. "Indian multinationals in the automotive and the pharmaceutical sectors: competitive advantages and strategies," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200906, University of Turin.

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    More about this item

    Keywords

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    JEL classification:

    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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