INDIA'S ECONOMIC REPORT SHOWS FOREIGN PHARMA INVESTMENT GROWING

The government of India's newly released Economic Survey 2005-2006 indicates that the amount of foreign direct investment in the country's drug and pharmaceutical industries has risen sharply in recent years. Between 2003 and 2005, investment increased from $1.92 billion to more than $13 billion annually, notes the report.

"With US$4.5 billion in domestic sales and over US$3.8 billion in exports, the domestic pharmaceutical sector continues to show satisfactory progress in terms of infrastructure development, technology base and product use," the report states. "The industry now produces bulk drugs belonging to all major therapeutic groups requiring complicated manufacturing processes . [the industry's] strength lies in leveraging the country's strengths in organic synthesis and process engineering and developing, without compromising on quality, cost-effective technologies in the shortest possible time for drug intermediates and bulk activities."

The report also projected general GDP growth of 8.1 percent during fiscal 2005-2006, impelled in large part by a high rate of foreign investment and modest inflation levels.