Dr Kiran now becomes the first Indian woman and the fourth Indian to be conferred this prize.

The previous honorees include Dr Amartya Sen, Nobel laureate in Economics (2007); Mr Baba N Kalyani, Chairman of Kalyani Group (2009); and Mr Sunil Bharti Mittal, Chairman of Bharti Group (2009).

Accepting the award from Prof. Dennis Snower, president, Kiel Institute for the World Economy, Dr Kiran Mazumdar-Shaw said, "I am honored to receive this prestigious award and consider it a great privilege to be in the company of great economists, world leaders and entrepreneurs."

Ms Mazumdar-Shaw pioneered biotechnology in India and started Biocon as a novel enzymes company, which has evolved into India's largest biopharmaceutical enterprise.

The Kiel Institute for the World Economy is an international center for research in global economic affairs, economic policy consulting and economic education.

This prestigious award, established in 2005 by the Kiel Institute, is bestowed upon individuals who have been pioneers in finding solutions to global economic problems by strongly influencing and implementing economic or trade systems based on individual initiative and responsibility.

This annual prize is awarded to three individuals: A high ranking policy maker, a renowned economist and an outstanding entrepreneur.

The winners this year include:

• Politics: H E Madam Ellen Johnson-Sirleaf, President of Liberia
• Economic Sciences: Prof Richard H Thaler, the University of Chicago
• Business: Dr Kiran Mazumdar-Shaw, CMD, Biocon, India

With this award, Dr Mazumdar-Shaw joins an elite list that includes Gro Harlem Brundtland, Norway's former Prime Minister; Mary Robinson, former President of Ireland; Joseph E Stiglitz, Nobel laureate in Economics; Paul R Krugman, Nobel laureate in Economics; Pascal Lamy, former Director General of the World Trade Organization; Jean-Claude Trichet, former President of the European Central Bank; and Dietmar Hopp, Founder of SAP.

Mr Sigmar Gabriel, German Vice Chancellor and Minister for Economic affairs, delivered the keynote address at the ceremony, which was attended by distinguished personalities from politics, academia, business and civil society.