Trips & the Pharmaceutical Industry in India

Abstract

One of the fastest growing industries in the world is Indian pharmaceutical industry. After 1947, the pharmaceutical industry in India was dominated by MNC's and the prices of drugs in India were very high. The government gave encouragement to the growth of drugs manufacturing by Indian companies in the early 1960's and this process got ignition with the passing of Patents Act 1970. The great process of economic reforms in 1990 transformed the shape of Indian pharmaceutical industry. This Act removed the composition patents from food and drugs and retained the process patents. It provided special status to medicines, food items and chemicals. With the establishment of WTO in 1995 and the adoption of TRIPS a revolutionary change took place in IPR's. India being a founder member of GATT and subsequently of WTO incurred an obligation to bring its IPR regime in tune with IPR obligations within 10 years. Being a developing country owing its commitments to WTO, India has been amending its IP laws. The Indian pharmaceutical industry has emerged technologically as the most dynamic manufacturing segment in the Indian economy. Since 1990's TRIPS played an important role to make Indian pharmaceutical as an important part of the knowledge industry. India happens to be having world's 6^th largest pharma market. Indian patent law has been amended after 1970's in 1999,2002&further in 2005 to comply with the provisions of patent act. TRIPS have included within the scope of IPR's the rights of plant breeders, trade secrets, rights arising out of biodiversity and computer layout design. The present paper seeks to analyse the significance of patent amendment Act in 1999,2002 &2005 consequent to the adoption of TRIPS by India and the post TRIPS scenario of the pharmaceutical industry in India.