The Indian medicine companies are now under increased scrutiny for safety lapses by American regulators. It is reported they have falsified drug test results and are selling fake medicines in the market.
The US medicines watchdog is issuing flood of penalties to the medicine firm including import bans on several medications that are found to be adulterated like the antibiotic Cipro, pain drug Neurontin and acne drug Accutane.
Recently Dr Margaret Hamburg from FDA was in India and said there are great lapses in the quality of the medicines by few pharmaceutical firms.
India currently supplies about 40 percent of over-the-counter and generic prescription drugs to the US. The increased scrutiny may lead to profound implications for the American consumers.
More than 100 Indian drug companies have been inspected, which is thrice compared to that done in 2009.
The Indian executives and officials whom Dr Hamburg met were shocked by the bans on generic medicines. Health secretary of the country Keshav Desiraju said some people take too much sinister view of the FDA inspections.
The increased enforcement of FDA has cost several Indian companies too much such as Ranbaxy, the biggest drug manufacturer in the country. Last year it paid $500 million fine.
The drug industry of India is an important sector boosting up the economy of the country. It exports $15 billion in products annually. However, in a new data by World Health Organization it is revealed 20 percent of drugs manufactured in the country are fakes.