Free Trade And Globalization Has Made A Big Impact On Pharmaceutical Industry

818 Words Sep 30th, 2015 4 Pages
Free trade and globalization has made a big impact on pharmaceutical industry in India. India used to make knockoffs drugs from the Western and Japanese pharmaceutical companies that foreign countries would not purchase. This was due to the patented products that violated the intellectual property rights. India was banned from selling fake products to developed countries. Also, foreign countries did not invest in India’s pharmaceutical business. This causes significant loss from foreign companies. However, India agreed with WTO rules on intellectual property rights, and stopped making knockoffs products. Thus, foreign companies begin to do business in India that resulted in dramatic growth in pharmaceutical field. The pharmaceutical field saw their sales up to $25 billion in 2010, a major increased of double figure since 2005. Exports drastically increased to 15 % from 2006 to 2011. The amount of exports was around $1 billion in 2000, but it was $11.5 billion in 2011. This result is from the partnership of Western countries because they are outsourcing labor, manufacture and packaging to India. India has a low wage based with educated workers who speaks English as a business language. Hence, India is an ideal place to invest and expand pharmaceutical business for foreign countries.

There are many factors that contributed to the growth of India’s pharmaceutical industry. India agreed with WTO on intellectual property rights and stopped making copy products. This made a huge…

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