India the fourth largest manufacturers of drugs in the world over 425 drugs are manufactured in India, comprising 60,000 formulations in over 60 categories and this is just current scenario. Mckinsey estimates that the market size, by value will triple by 2011 IMS Health says India could dominant the entire production chain for generics and become a major alone, In 2007 the top 20 companies spent 7.3 % of their annul turnover on R&D India has more than 80USFDA approved facilities more than any other country apart from the US .One in every four coupled with Lower production costs (as much as 30% -50%), a highly educated and well trained workforce, strength in chemistry and productivity and globally competitive prices make for a compelling argument for global markets to outsource a significant portion of their manufacturing and clinical research activities to Indian companies.

Andhra Pradesh is also a Major center for pharmaceuticals with companies such as Dr.Reddy’s Labs, Matrix Laboratories, and Hetro Drugs, Divis Labs, Aurobindo Pharma, and Vimta Labs being housed in the city. Initiatives such as genome valley and the nanotechnology park are expected to created to create extensive infrastructure in Bio –technology, PHARMEXCIL, the export promotion council for the pharma industry is also headquartered in Hyderabad, Though India’s western region is still leading in the pharmaceutical industry, southern India is also fast catching up the pharma industry cluster in hyderabad and its nearby cities is approximately worth $1 Billion and annual growth rate is around 20% in the recent years. Hyderabad has gradually emerged as a leading drug manufacturing city with a strong presence in the global arena The pharma industry in the state of Andhrapradesh contributes more than one third of the total production of the country, The state of andhrapradesh can be called the pharmaceutical capital of the country.