Pharmaceuticals is one of the essential industry of any economy and government plays its role in many ways. Currently India’s one-fourth of the domestic pharmaceutical market is controlled. The total pharmaceutical industry size in India is Rs. 30,000 crores ($5.7 bn). Global pharma industry is estimated to be about $400 bn. Typically pharmaceutical companies spend about 15% of their turnover of R&D.

In an recent development, government of India have asked to withdraw 294 comb ination drugs. No, the pharmaceutical industry has agreed to withdraw 120 combination drugs from the market. A combination drug consists of two or more molecules used to treat multiple ailments. For eg., pills which cure cold and also act as pain killers.

Lets recall how the government in recent past have acted in Pharma industry, In the beginning of year 2007, The Union Minister for Chemicals and Fertilizers proposed to control the prices of 354 essential medicines by going into their cost of production.

Also, the ministry had asked the pharmaceutical companies in Nov last year to contribute a share of their turnover to provide free medicines to the people through drug banks and medical camps for the poor to show an interesting example of PPP (Public Private Partnership) . If the companies fail to meet their commitment, they would not be allowed an annual upward revision of prices.