The experience of India’s pharmaceutical industry during the shift to the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is one of the most important moments of structural adjustment undertaken by an Indian industry in the post-reform era, it said.
“The lessons are particularly relevant in the present times of increasing trade uncertainties and protectionist trends,” the survey said.
“Regulatory capacity, diversified markets, and upgraded capabilities transformed a vulnerable sector into a global powerhouse. Rather than being diminished by TRIPS, the sector repositioned itself at the higher end of the pharmaceutical value chain,” it said.
The pharma sector’s rebound from the TRIPS crisis is a clear demonstration of how external shocks can be turned into opportunities through strategic action, the survey said.
In the current situation of an unpredictable global tariff regime, India Inc. can draw inspiration from the pharmaceutical sector to capitalise on this situation to its advantage, it said.
India Inc. must focus on capability building through strong R&D, Market diversification to reduce dependence on a single market and build resilience, and partnership-driven models such as co-development, licensing, and contract manufacturing to help reduce risk, the survey said.
Additionally, strategic consolidation is necessary to expand in capital- and compliance heavy environments, it said.
