Pinch of salt, don't be fooled into thinking there are no doctors out to make money, etc. A 5000 Rupee tip is humongous. It's probably what she makes every month. If you had offered Rs 500 instead, she'd have likely taken it happily.
Essential drugs are cheap because of not paying for R+D, plus government subsidies.
Not sure I'd agree there. In the west, even mundane drugs that don't need all that R&D, like common painkillers, antibiotics, vitamins, etc. are expensive. I think the issue in the west stems from regulations that make it difficult for new players to penetrate the market, even for generics. Running a cartel becomes easier that way.
Compare [1] and [2].
[1] http://www.walgreens.com/store/c/tylenol/ID=957-brand
[2] http://www.medindia.net/drug-price/acetaminophen/crocin-500m...
In case you were telling me the price because you thought I disagreed that it's cheaper in India, I don't. My point was R&D cost is not the reason why common drugs are cheaper.
Also, the term I should have used was "Life saving drugs". An example would be Sorbitrate (http://www.everydayhealth.com/drugs/sorbitrate). Crocin is not something that falls in that category in India.
[1] http://www.goodrx.com/isosorbide-dinitrate
[2] http://medlineindia.com/cardiovascular/isosorbide_dinitrate....
So its the currency conversion factor is what makes it look low.