The tussle between Indian generic drug industry and western innovative pharmaceutical firms is set to get stronger as India is considering dragging the European Union to WTO on the issue.

India's 12-billion dollar pharmaceutical industry gets 40 per cent of its revenue from exports of generic drugs across the world, of which a large part goes to the EU and the US markets. However, it constantly comes under fire from large pharma companies in these regions in the name of patent infringement.

"It is a very concerted move by MNCs to disrupt the growth of Indian generic industry," Commerce Secretary  Gopal Pillai said.

Underscoring the need for unity of the developing nations on the issue he said, "we may have to take the issue to the WTO and challenge it, we would be seeking consultation with the EU."

Under the WTO rules, before a country takes another member to the Dispute Settlement Panel it gets into the process of "consultations". If the consultations do not yield into a resolution of the issues, the WTO Dispute Settlement Panel starts the proceedings.