The Indian supreme court recently rejected Novartis' patent on Glivec, because the formulation wasn't different enough to merit a new patent (I don't know enough to know whether that was the right decision; just pointing out that the patent situation is different). The Indian government also has pricing restrictions on ~350 drugs deemed "essential".
On top of this, compared to the US, there's little to no drug marketing in India (yet). Plus lower labor/capital costs, etc.
Not true, there are huge marketing overheads in India. Drug Marketing in India is much more hidden, companies shower huge gifts and money to doctors to prescribe their drug. SO essentially companies cannot publicly declare this as marketing budget.
The Indian supreme court recently rejected Novartis' patent on Glivec, because the formulation wasn't different enough to merit a new patent (I don't know enough to know whether that was the right decision; just pointing out that the patent situation is different). The Indian government also has pricing restrictions on ~350 drugs deemed "essential".
On top of this, compared to the US, there's little to no drug marketing in India (yet). Plus lower labor/capital costs, etc.