The extant literature dealing with the impact of TRIPS agreement on Indian pharmaceutical
industry takes the whole country as a unit of analysis, but the present study is unique in the
sense that it takes into account the regional aspects of Indian pharmaceutical industry,
based on various reports and unit-level data of Annual Survey of Industries since 1991 to
2011. In the year 2005, Indian pharmaceutical industry came under the obligation of
Trade-Related Aspects of Intellectual Property Rights (TRIPS); Simultaneously, Indian
pharmaceutical firms were also required to comply with Good Manufacturing Practices of
World Health Organisation (WHO-GMP). The descriptive evidences depicted that with
the introduction of TRIPS and WHO-GMP number of firms and man-days employed
declined across the states during the introductory period of TRIPS; whereas net value added
and gross capital formation remained constant for the same period. But in the post-TRIPS
period most of the states reported greater performance, especially in terms of net value added
and gross capital formation