... Indian companies have only focused on reverse engineering blockbuster drugs from MNCs, overseas scientists have displayed little interest in researching sub-contiment specific diseases as re are more profits and public interest in lifestyle drugs such as obesity ...

The above sentence from latter half of first paragraph of passage clearly states reason for India's continuing battle with commonplace diseases.

Option E hence is correct answer here.

... Ors like Korea and China without a large pool of scientists make up by facilitating foreign research in every conceivable way ...

The 1st statement is not true in context of passage because above sentence from 1st paragraph of passage clearly suggests that China facilitates foreign research to make up unavailability of scientists in its country. Cost factor hasn't been mentioned in passage at all. 

The 2nd statement holds true. Kindly refer to last paragraph of passage.

The 3rd statement also holds true. Kindly refer to 1st sentence of 1st paragraph of passage.

The product patent law protections required by TRIPS agreement and brought about by 2005 amendment to Patent Act require India to protect undisclosed test data from disclosure and unfair commercial use by competitors.

Option C is correct answer here.

... Ors like Korea and China without a large pool of scientists make up by facilitating foreign research in every conceivable way. ...

Clearly option E is correct answer.

... With low cost, speed and high quality advantage, India is gearing up to become hub for contract research and manufacturing. ...

It's evident from 2nd statement of 1st paragraph of passage that India's strengths in drug discovery and research are low cost, speed and high quality. 

Option E hence is correct answer.

... research-based pharma companies are being forced to undertake vital clinical trials abroad. Huge expenditures are incurred overseas, draining precious foreign exchange when this could be done at home at a fraction of cost. 

It's clear from last sentence of 2nd paragraph that loss of foreign exchange is disadvantage of holding clinical trials abroad.

Option D hence is correct answer.

... Some negate necessity to make data exclusivity a law. They argue that advocates of making it a law, MNCs, want data to be protected absolutely for a period of 5 years. However, in case certain drugs are not available or unaffordable, should government for common good not be able to exercise power ...

Argument 2 and 3 can be inferred from last few sentences of last paragraph of passage.

Option D hence is correct answer.

... The product patent law protections required by TRIPS agreement and brought about by 2005 amendment to Patent Act require India to protect undisclosed test data from disclosure and unfair commercial use by competitors. ...

It's clear that Option D is correct answer.

... Ors like Korea and China without a large pool of scientists make up by facilitating foreign research in every conceivable way. ...

It's given in passage that China doesn't have a large number of scientists while statement in option C states opposite fact. 

Option C hence is correct here.