India is one of the life line country for all developing country for supplying of generic medicines (Shrank WH, 2011). Since, India has been exporting generic medicine more than 200 countries. These are 28% to America, 18% to Europe and 17% to Africa. In India branded medicines have occupied dominant role in the pharma market. It is might be the reason of lack of drug pricing control laws. Present the generic medicine has been exporting 80% whereas branded and patent drugs are 20% occupation in domestic drug market. It is estimated that the generic products has to be increased up to 90% in the next year 2017-18 and it is higher than 80% in the previous year. This study presents to analyse the growth of generic medicine in India, to understand the mechanism for approval process of generic products, to analyse the future challenges for Indian generic products and to give appropriate suggestions for promoting generic products in order to reducing health expenditure in India.