Podcasts News In Pursuit of Development How India became the "pharmacy of the world" — Rory Horner

How India became the "pharmacy of the world" — Rory Horner

Published: Feb. 10, 2021, 7 a.m.

One of the many ways in which India has expanded its influence in global affairs relates to pharmaceutical products. The Indian pharmaceutical sector has enthusiastically highlighted its ability to develop Triple A technology (affordable, available, adaptable). By encouraging research hubs and offering a steady supply of affordable drugs to many countries, including the United States, India has rapidly moved from being a pharmacy for low-income countries to becoming the “pharmacy of the world”. 

The country’s rapidly growing economy has been a major beneficiary of the astonishing rise of the domestic pharmaceutical industry. In becoming a powerhouse on low-cost generic drugs, India contributes actively to meeting global demands for vaccines, Over the Counter (OTC) medicines and patented drugs.

An important factor that has contributed to enhancing the reputation and profitability of Indian pharmaceutical companies abroad has been the government’s tough policy on patents, which has enabled Indian firms to manufacture generic versions of drugs that are much more expensive in countries where they were originally developed. 

But Indian companies also face numerous challenges in the export market. There is a growing demand to reduce costs even further. And several countries in Latin America, Sub-Saharan Africa and Southeast Asia are trying to protect and promote their domestic industries by introducing new regulations that make Indian imports more expensive. There are also concerns that India has become increasingly dependent on imports from China for so-called “active pharmaceutical ingredients” required for making both advanced and essential medicines.

To discuss India’s huge and thriving pharmaceutical industry and the country’s ability to supply affordable vaccines and generic drugs to low-income countries, I am joined by Rory Horner. He is a Senior Lecturer in Globalisation and Political Economy in the Global Development Institute at the University of Manchester. We began by discussing the role and impact of the pharmaceutical industry in global development.