At the time of Independence, the pharmaceutical industry in India was dominated by MNC’s with almost no role for the Indian companies. Indian companies however, started to grow since 1970 with the implementation of IPA 1970, DPCO, FERA 1973 and import tariff and came to dominating the industry in 1990. In 1991, the implementation of globalisation policy brought about reversal of the situation for the Indian companies and favorable to the MNC’s. Nevertheless, the Indian pharmaceutical companies showed significant improvement in formulation production, formulation consumption and total consumption, decrease in the formulation imports, decrease in the bulk drugs production, increase in bulk drugs imports and also increase in the foreign exchange earnings. The performance of the Indian pharmaceutical industry as measured through various parameters, has shown that there had been increase in the production, consumption, exports and foreign exchange earnings and decreased in the imports as a result of globalisation. The exports and imports of pharmaceuticals have shown that India is moving towards “only exporting country” with reference to pharmaceuticals.