Manpower, adaptability make pharma FDI hotspot

India has become a preferred destination for foreign direct investment (FDI) in pharma industry because of its vast pool of researchers and improved research and manufacturing facilities, a study has revealed.

India climbed up the global pharma ladder mainly because of its ability to learn and adapt best management practices from MNCs, according to a study by New Delhi-based Research and Information System for Developing Countries.

"The presence of foreign firms has indirectly encouraged domestic firms to increase their managerial efforts and to use some of the marketing techniques used by MNCs," the study said.

Also, the presence of MNCs has intensified competition and has led to consolidation in the industry with mergers and acquisitions between MNCs and domestic companies.

As the Indian pharmaceutical industry is one of the most advanced in terms of technology, quality and range of medicines manufactured, India is becoming one of the most preferred countries for foreign firms in respect of joint R&D, contract research and manufacturing, the study stated.