India: A Global Strategic Asset for Developed World Market Businesses

Abstract

This paper is an abridged version of a presentation made by Dr Tempest at the ‘Generics, supergenerics and patent strategies’ conference in London, 15 May 2006. After a steady decline, Asia is now returning to GDP levels it enjoyed in the late 19th century. India, expected to become the world's third largest economy by 2050, offers many advantages, to businesses, investors and partners especially in the pharmaceutical industries in the developed world. India's advantages include projected economic growth at 6–8 per cent, high scientific productivity, a population which is ageing less quickly than other major economies, an attractive environment for research and development investment; a large reservoir of scientifically qualified manpower, a preferred destination for foreign direct investment and an information-driven society. There is great potential for improvement, particularly in infrastructure. The Indian pharmaceutical market, now with intellectual property rights, offers three principal competitive advantages; a very aggressive home market, the relatively low cost of manufacture and most importantly the relatively low cost of innovation. India is well positioned in what looks to be a buoyant future for generics worldwide. While there are potential downsides to consider, India is becoming more pronounced as a global strategic asset for developed world businesses. Foreign companies should be looking to India as a platform for building their European and US markets.