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Introduction

In: Performance of Pharmaceutical Companies in India

Author

Listed:
  • Mainak Mazumdar

    (Centre De Sciences Humaines (CSH))

Abstract

This chapter presents an overview of the Indian Pharmaceutical Industry and traces its evolution and growth. From the review of policies and the analysis of the aggregate data, we conclude that the patent law of 1970 and the knowl-edge spillover from the public sector units provided the necessary impetus for the growth of the industry. Presently, the structure of industry looks highly competi-tive with the top twenty firms capturing about eighty percent of the market and negligible barrier to entry. However, contrary to the conventional economic wis-dom evidence also suggests that it is one of the most profitable industries. The co-existence of low concentration and high profit earning that is observed can be attributed to firm specific factors like its efficiency, returns from R&D, marketing related outlays and earning from global market.

Suggested Citation

  • Mainak Mazumdar, 2013. "Introduction," Contributions to Economics, in: Performance of Pharmaceutical Companies in India, edition 127, chapter 0, pages 1-15, Springer.
    • Handle: RePEc:spr:conchp:978-3-7908-2876-4_1
    DOI: 10.1007/978-3-7908-2876-4_1
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