The Indian pharmaceutical industry has made tremendous progress over the years and is considered as a reliable source for supplies globally. The firms have unique strengths and growth models that keep them ahead of international competitors. The sector has been one of the foremost recipients of foreign investment. The relationship between buyers and suppliers in the GVCs could be both modular and market based depending on segment. However, knowledge transfer has been limited and the industry is facing serious obstacles to upgrading. Improved regulations and a favourable policy environment are needed along with concerted efforts by the firms if the industry is to enhance integration and move up the value chain.