Anshuman Vijay Magar

A study of foreign direct investment in indian pharmaceutical industry

  • Authors Details :  
  • Anshuman Vijay Magar,
  •  
  • Dr. Nishikant C. Dhande

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Human being has some basic needs which include Food, Clothing & Shelter, in addition to above Healthcare, Education, Sanitation are also core part of basic necessities in modern society. In above mention basic necessities Healthcare facility was near to unavailable till independence for majority of citizens in country but this picture change dramatically with help of FDI allowed by Govt. of India. Foreign Direct Investment as a strategic element of funding is required in every develop & developing country. FDI inflows are long term in nature which causes source of non-debt finance, as well as bring modern & innovative technology in country by creating international network. In this paper, author attempted to discover how FDI is crucially impact on Indian Pharmaceutical Sectors progress by stimulating domestic investment & new employment opportunities, improving healthcare facilities to citizens in India. With the help of available relevant secondary data, a qualitative approach was followed for the study. It was found in study that the major factors responsible for attracting FDI in pharmaceutical sector are rise in outsourcing activities, demand in the generics market, demand from emerging segments, increase in domestic demand, large numbers of forthcoming patent expires. On the other hand Indian pharmaceutical industry is facing some challenges such as, low government expenditure on healthcare, poor healthcare infrastructure in rural areas, lack of proper Govt. policy to attract larger FDI in healthcare sector.


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