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Heather Timmons of NYT News Service reported that, the Indian drug industry is progressing towards an estimated growth of about 13 % this year,thereby, expecting a total turnover of over $24 billion.

"India is becoming a base for manufacturing for the global market," said Ajay G. Piramal, Chairman, Piramal Healthcare. Executives, analysts, research groups and consultants are optimistic about India's role in this field's future.

There have been many instances of takeovers and joint ventures in the recent months in this field. Piramal sold its generic drug business to Abbott Laboratories for $3.7 billion.

The foreign angle in the Indian drug industry was kicked off when Daiichi Sankyo of Japan bought a stake in Ranbaxy Laboratories in 2008. Other deals that were cracked include GlaxoSmithKline's partnership with Dr. Reddy's Laboratories, Pfizer's tie up with Claris Lifesciences. Also Bristol-Myers Squibb opened a research center in India with Biocon.

"There is a lot of good talent at a much lower price in India," said Jim Worrell, the Chief Executive of Pharma Services Network, a Charlotte, N.C.-based consulting firm that is organizing tours of Indian factories for Western pharmaceutical executives who are considering outsourcing some of their business. "What I see happening now is manufacturing and even packaging and even formulation are moving to India," added Worrell.

The move to pharmaceuticals marks a shift in the Indian economy. India is now showing a keen interest in advancing business value chain in law and medical diagnostics. Research and development, the more sophisticated end of drug making could bring in opportunities for India and even development of proprietary medicines.

Government figures show that India has exported about $8.3 billion in drugs and services for the pharmaceutical industry in the 2008-09 fiscal year, up by 25 % from the year before.

However, the growth has been eclipsed by some quality problems. Ranbaxy was accussed of violating manufacturing norms by FDA. Sanofi-Aventis retracted vaccines distributed to WHO after complains of white sediments being present in the vials.

Even after making stricter patent laws, India still has many pending suits of intellectual property being fought between Indian and foreign firms. As a result, big pharmaceutical companies find it tough to secure protection of their intellectual property.

In the meantime, fake drug making remains widespread in India. In fact a study reported 3.6 % of the drugs had no active ingredients whatsoever.

Panos Kalaritis, the Chief Operating Officer, Irix Pharmaceuticals said, "Cost is one issue, and yes it is important, but there are two other critical factors: intellectual property and quality and safety issues."

As an effect of India's increasing presence in global drug market FDA has opened two offices in the nation- one in Delhi in early 2009 and other in Mumbai in June 2009.

All this show how face of India is slowly changing for better in the drug industry. While China remains undoubtedly the low cost drug maker, India has got a slight edge here. It's educational system supports the growth of pharmaceutical scientists and longer experience dealing with Western regulators. Here is hoping the Indian drug industry makes huge strides in the coming years to come.