Intellectual property protection plays a very important role in India. Over the past two or three decades, a number of changes have been made to IP policy and regulation in India to strengthen intellectual property protection, including patent, trademark, copyright, design and geographic indication. India signed the TRIPS agreement in 1994, which came into force on 1 January 1995. In India, pharmaceutical patents were not issued until 1995, which changed after the TRIPS agreement came into force and was amended in 1995 by the Patent Act 1970. Section 5 of the 1970 Patent Act, which states that the patent is issued only for methods or processes and not for products, was repealed as a result of the 2005 amendment, so that methods or processes are now being granted not only, but also pharmaceuticals that have had a very large influence on economic growth. A patent is one of the most effective intellectual characteristics for achieving economic development. The number of patent applications filed by India in recent days has increased compared to previous years and has therefore led to economic growth. Today, multinational companies based in India have clearly demonstrated the impact of intellectual property on global economic growth. India`s patent system has an indirect impact on India`s economic growth.
Now that India has appropriate laws to protect intellectual property and their implementation is good enough to be trustworthy, a number of multinational companies have begun their research and development process in India, which has indirectly increased the country`s economic growth with higher taxes and job creation for the Indian population. Ranbaxy is a multinational company founded in 1961, employing 1,700 people in 2005 and saw the number of employees increase to 10,983 in 2012. It is observed that the significant increase in the number of people employed indirectly increases India`s economic development. Dr. Reddy is another Indian multinational founded in 1984 and employing 7,525 people in 2006, and in 2018, the number of employees has increased to 23,524, as it is clear that in 12 years, more than 200% growth in the number of employees has been achieved in a company, which has led to growth in the country`s economic growth. The total turnover of the Indian IP offices amounted to business rates.