The study was commissioned to IIT-Kharagpur. The objective of the study was to enquire into the development of jurisprudence in India in the field of creation of intellectual property rights and competition law in general, and the impact of product patent law on India’s competition policy and law, in particular. Research under this study was confined to the pharmaceutical and chemical industries in India. The study shows that there is likely to be a trend to restrict production by exclusive license since the number of exclusive licenses granted by the patent holders has increased in the course of last two years. This also has an adverse impact on the price and ‘affordability’. It is suggested that a comprehensive policy on ‘compulsory license’ may be framed taking in view the gross abuse of dominant position by the ‘patent holder’ and ‘the licensee’.