Impact of Macro-Economic Variables on the Production of Pharmaceutical Industry in India

Abstract

The Indian pharmaceutical industry is renowned for the production of lifesaving drugs at low cost, for which it is also referred to as the “lifeline industry." The paper attempted to analyze the factors that are affecting the production of the Indian pharmaceutical industry. The study was conducted using secondary data of the Indian pharmaceutical industry from 2007 to 2019. Statistical tests such as the DW test, F test, and BP Godfrey test, along with other tests, have been used for robust analysis. The findings suggest that invested capital, viral hepatitis, and others have a positive impact, whereas the population has negatively impacted the production of the Indian pharmaceutical industry. The study recommends that more attention is required to be paid to the R&D section of the Indian pharmaceutical industry, which can help to develop the industry and reach its potential. Also, the study recommends the implementation of the “Make in India” initiative in the Indian medical device industry.