“This is a key statistic, as first ANDA-approval is considered a major reward in the generic drug industry and comes with the exclusive right to sell the generic version of a drug for the first 180 days after patent expiry,” indxx said.

Moreover, indxx argues that Indian drugmakers have strong balance sheets and may continue to expand through merger and acquisitions.

ETF investors may look to the Market Vectors Generic Drugs ETF (NasdaqGM: GNRX) as a way to tap into the growing generic drugs space. GNRX tries to reflect the performance of the Indxx Global Generics & New Pharma Index, which tracks a number of global drug makers that generate significant revenue stream from generic drug sale.

The generic drug ETF includes a hefty 20.2% tilt toward Indian companies, such as Lupin (LPC), Dr. Reddy’s Laboratories (DRRD) and Sun Pharmaceuticals (SUNP), which are in strong positions to take on additional debt to merge with or acquire others in the industry.

Max Chen contributed to this article.