India's paradox: The largest drug exporter and the most isolationist drug industry

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Article Highlights

  • Dangerous or not, India’s pharmaceutical industry continues to grow because of price.

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  • India’s main problem now is that nationalism has replaced health protection as the guiding principle of drug regulation.

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  • Enforcement on adulterated drugs cannot be different in #India just because good manufacturing practices are so laxly interpreted there.

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The reach of the Indian pharmaceutical industry is enormous. India supplies a large and increasing amount of the generic drugs sold globally, and the country is home to over 150 drug manufacturing facilities approved by the US Food and Drug Administration1—including many run by multinational players. The value of pharmaceutical exports from India to the United States rose nearly 32 percent in 2012, to $4.2 billion.2 India supplies nearly 40 percent of generic drugs and over-the-counter products as well as 10 percent of finished dosages used in the US.3 Some of these products are very substantial: Ranbaxy, one of India’s largest pharmaceutical companies, won the right to make the only generic version of Lipitor for sale to Americans when it was the world’s best selling drug with peak annual sales of over $12 billion.4 India is one of the largest suppliers for the Internet market in western countries and is the dominant provider in most emerging markets, too.

India's paradox: The largest drug exporter and the most isolationist drug industry by American Enterprise Institute

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