In the 1960s, Indian policy-makers identified distortions in the domestic pharmaceutical market, and in 1970 decided to eliminate pharmaceutical product patent protection. Local scientists were able to reverse engineer pharmaceutical compounds manufactured in industrialized countries. Local entrepreneurs built manufacturing facilities; refined manufacturing technologies; and produced and sold increasingly large volumes of pharmaceutical products that were subject to patent protection elsewhere.
The success of India’s pharmaceutical industry is attributable to more than elimination of patent protection. For example, India has a population of approximately 1.25 billion people, representing a large, built-in internal market. This allowed local manufacturers to achieve economies of scale before they sought to enter export markets. <
World Health Organization (WHO/OMS) Publication: Pages: 60, Publication date: 2017, Languages: English, ISBN: 978-92-4-151221-3