Global Development: Views from the Center

This post originally appeared on the Peterson Institute for International Economics blog.

On April 1, the Indian Supreme Court rejected the attempt by Novartis, the Swiss pharmaceutical company, to patent a new version of the leukemia drug Glivec. The latest verdict follows previous rulings that granted compulsory licenses to an Indian generic drug manufacturer for a kidney cancer drug (Nexavar) patented by Bayer. Five important questions are raised by these rulings.

This is a joint post with Christian Meyer.

For global producers of consumer products, the rise of a middle class in India is great news. Dunkin’ Donuts, Starbucks, and IKEA have all recently announced they will move into the Indian market. The Swedish furniture maker plans to invest up to €1.5 billion over the next 15 to 20 years. A growing and more economically secure middle class in a country that, for all its troubles, is expected to continue to grow at a healthy if not torrid pace, ensures a healthy consumer market for years to come.

The audience in New Delhi, India clung to their seats well past the scheduled end of the program at the recent launch of CGD’s Understanding India Initiative. India’s minister for rural development (and former minister for the environment) Jairam Ramesh, presided over the event, which was organized and hosted by Pratap Mehta (president of the Center for Policy Research and non-resident CGD fellow CGD). Among participants was Nandan Nilekani, head of the Unique Identification Authority of India (who we look forward to welcoming to Washington when he delivers the 2013 Sabot Lecture); prominent academics, and the India-based representatives of foreign development assistance institutions.

As India’s economy slows, is Indian growth losing its way? CGD senior fellow Arvind Subramanian thinks so. This week Arvind faces off against Shashi Tharoor, a member of the Indian parliament, in a debate on the Indian economy hosted by The Economist. Their opening remarks were posted today, and you can read them here (free registration required).