Multinational pharmaceutical firms including Roche, Pfizer and Astra Zeneca are waiting for the official approval to conduct clinical trails in India. DCGI received 100 applications for conducting such trials in 2005 this grew to 350 in 2008. Experts estimate that during the next three years, the clinical research industry in India will be worth about two billion dollars. Different experts have different opinion about this boom in clinical research industry.

Some attribute this to financial profits due to low cost while other believes this is due to growing interest of pharma majors in emerging markets like India.

CM Gulhati, a medical expert, editor of the Monthly Index of Medical Specialities (MIMS), said: "In second-tier US hospitals, the cost of conducting a clinical trial is over $20,000 per subject, while the cost at a first-rate academic medical centre in India is $1,500 to $2,000 per subject."

DCGI Surinder Singh said: "We are aware of the increasing number of clinical trial applications and have taken steps to ensure the ethical conduct of such trials. Registration of all clinical trials will be made mandatory from June. Similarly, there will be clinical trial audits to see if they are being carried out properly."

Gulhati said: "In India, there is no law for investigators to declare conflict of interest; so, an investigator can be the beneficiary of funds and fully-paid-for foreign travel from a drug company and yet conduct clinical trials on the drugs of the sponsoring company."