According to BMI author Mike King, the key draws of the Indian market are the sheer market size, strong annual growth indicators, recently introduced healthcare insurance scheme for the poor, and the improving economic as well as intellectual property (IP) environments. On the other hand, excessive red tape, underdeveloped infrastructure, low per capita spending, and stringent pricing controls hamper the environment.

The report also said another distraction for MNCs was additional price reductions announced by the National Pharmaceutical Pricing Authority (NPPA), despite a cut on excise duty on all formulation products and more funds allocated for disease eradication under the 2008-2009 Union Budget. Nevertheless, multinationals continue to exhibit their interest in the market. The report quoted Israeli generic giant Teva—as an example— is planning to use India for active pharmaceutical ingredient (API) production, with the announcement that it is looking out for acquisitions in the country and setting aside money to expand its own independent manufacturing locally.

Similarly, in February 2008, German healthcare company B Braun established a new manufacturing plant in India, while also starting to market a new product range and beginning to seek local collaborators.