Health is an essential socio-economic asset which contributes to economic development in numerous ways like enhanced productivity, improved human capital etc. Sizable improvement in health outcomes are a prerequisite for a developing country like India to break out of its vicious circle of poverty. Indian pharmaceutical industry in turn plays a vital role in providing health care to billions of population in India and abroad. However, several malpractices and frauds in the midst of stiff market competition adversely affect the consumers. This paper thus aims at highlighting the issues concerning the Indian pharmaceutical industry and its undesirable impacts on consumers.