Technology is indispensable in whatever age we may be living in . There is no denying the fact that technology has acquired the power and potential to turn and twist our senses and sensibilities. It is the practical application of technology that influence the human psychology. Technological change can be seen in all industries and particularly in pharmaceutical industry. The dynamism in this industry has motivated researcher to establish the impact of technological change on the productivity growth. The manufacturers of various drugs and medicines in India have captured not only the Indian markets but also the world markets and have become leaders in exporting these drugs and medicines. Ranbaxy, Cipla, SunPharma and other players have increased their total output thereby increasing their profit margins. In this dissertation an attempt is made to determine the impact of technological change on total factor productivity and on the growth of gross output in the pharmaceutical industry in India.