India produces 20% of the world's generic drugs and has made the pharmaceutical industry one of the pillars of the Indian economy.

Currently, Indian pharmaceuticals are exported to more than 200 countries, and vaccines and biopharmaceutical products are exported to 150 countries.

More than 60% of India's generic drugs are exported to developed countries such as the United States, Europe, and Japan.

There are five reasons. One is the support of government policy, which allows domestic pharmaceutical companies to produce generic drugs.

In order to allow Indians to enjoy affordable medicines, India’s patent law allows for compulsory licensing of medicines.

Under certain circumstances, the government can force generic drug companies to legally copy and sell the same drug without the expiration of the patent and without the consent of the patent owner.

Second, Indian pharmaceutical companies have strong R&D capabilities.

According to the US Food and Drug Administration (FDA), 40% of generic drugs produced by Indian companies were approved in the first half of 2017.

Nine months after a new drug is launched in the United States, a similar Indian generic drug can be produced and enter the Indian market.

The third is the Drug Price Control Act (DPCO).

Its main purpose is to set price ceilings for designated bulk drugs and main preparations, ensuring that consumers can obtain drugs at lower prices and restricting pharmaceutical companies from obtaining higher profits on drugs.

This approach effectively lowered the price of drugs and also hindered the business of foreign pharmaceutical companies in India.

Fourth, the cost is low.

The IBEF (Indian Brand Management Fund affiliated with the Ministry of Commerce of India) report pointed out that India's production costs are nearly 33% lower than those in the United States, labor costs are about half of those in Western countries, and the cost of building a factory in India is only 60% of those in the West.

5. Professional talent team and management standards in line with European and American standards.

The management of generic drugs in India is standardized, and most of them are implemented in accordance with the rules of the US FDA.

There are 546 pharmaceutical factories in India that have passed FDA certification, and 2,633 drugs have passed FDA certification.