Global consulting firm Ernst & Young said that India's pharmaceutical outsourcing sector has a solid competitive advantage in global pharmaceutical innovation, patenting, manufacturing and regulation.

Ernst's & Young's 'Progressions 2005' said, "India is becoming an integral part of the pharma value chain, as large global pharma companies continue to increase their sourcing of APIs, offshoring of clinical development and partnering with domestic companies for new product development and marketing in India."



In addition, the annual report on global pharmaceutical trends stated that India's pharmaceutical sector will have a significant impact on global tax, regulation and IT environment.

The report goes on to say that the partnership between India and global companies will be mutually beneficial. Indian companies would be able to be part of the global research networks and access new technologies as international pharmaceutical companies would be able to tap India's wide pool of scientists.