The Pharmaceutical Industry in India, over the years, has been the life-line Industry. It not only caters to the health needs of the vast multitude of Indian population but also has been one of the major foreign exchange earner industries in the country. Inspite of its phenomenal development, during the last three decades the Pharmaceutical Industry in India, as it stands to date, caters to the need of only upto 30% of the population. To meet the growing needs, production of both bulk drugs and formulations, has got to be increased, at a minimum growth rate of 20% per annum. To achieve this target, therefore, a fresh investment of Rs.2,000 Crores approx. is envisaged. The current estimated drug market of approx. Rs 7,000 crores should also be doubled over the next few years, if the Indutry is to cater to the need of more than 30% of the population as at present. As we move into the post-GATT era in our country the requirements of the Pharmaceutical Industry would have different dimensions, as the Industry would need to invest much more in R&D activities. At present the Industry spends about 2-3% of its turnover in R&D. To meet the global competition, it is imperative that the expenditure on research and development will have to be increased to 8-10% (which is the standard of developed countries) of the sales turnover.

It is estimated that about 15% by value of the Indian market will be covered by patents sometime after 2005. The remaining 85% of the market will, therefore, continue to be exposed to the full impact of the market competition, including challenges from multi-national companies. It is therefore expected that the Pharmaceutical Industry in India will witness new demands in research and development activities, provided the Industry is allowed to catch up on the cost increases that have not been compensated, in recent years, due to the restrictive policy pursued by the Government of India. There is a tremendous surge of interest in the field of herbal medicines throughout the world. As India is rich in Ayurveda since time immemorial, the Indian Industry should take a fresh look so that it can produce herbal medicines, properly researched with particular reference to tropical diseases, where these medicines have enormous potentialities.The other area worth mentioning will be, Biotechnology-based medicines which are expected to play a significant role in the pharma world. A closer look in this area along with the goal-oriented research may enable the Pharmaceutical Industry in India to face both the domestic, as well as global challenges of the 21st Century.As we move into the 21st Century, a clear perspective of the Pharmaceutical Indutry in India Should broadly put its emphasis on:

more investment in research and development activities

higher dose of investment in expansion of existing industry formulation of new projects

penetration into the rural market with a view to cater to higher percentage of the population and

be a global player in the Drugs and Pharmaceutical field.