Pharmaceutical exports have grown from Rs. 6,256 crore in 1998-99 to Rs. 30,759 crore in 2008. Exports of pharmaceuticals have been consistently outstripping the value of corresponding Imports in the period 1996-97 up to 2007-08. Exports registered a growth rate of 25 per cent in 2007-08 over 2006-07. The sector attracted FDI amounting to US$ 1,401.60 million during 2000-01 to September 2008, of which, US$ 125.30 million occurred during April- September 2008.

Investments in pharmaceutical sector are now expanding into areas of innovative R&D focused outsourcing opportunities like clinical trials, data management services, pharmaceutical informatics, lead discovery and optimization, pharmaco-kinetics and pharmaco-dynamics and pre-clinical drug discovery in combinatorial chemistry, chiral chemistry, new drug delivery systems, bioinformatics and phyto-medicines. The Indian pharma industry is taking leaping strides in innovative drug discovery with clinical trials underway in 34 molecules. Consequently, the Indian drug discovery market has grown from US$ 470 million in 2005 to US$ 800 million in 2007.