Explanation:

Second option is correct.

TRIPS became effective on January 1, 1995 by agreement of WTO member states, who then became obligated to implement domestic laws to comply with the TRIPS minimum requirements. Developing countries were initially given up to five years (i.e. until January 1, 2000) to implement domestic laws in accordance with TRIPS.

Member states obligated to provide patent protection for an area of technology for which no domestic protection existed as of the effective date of TRIPS received an additional five years (for a total of ten years, or until January 1, 2005) to bring their domestic laws into complete compliance with respect to product patents in the new area of technology.

Both of these five-year provisions applied to India in the area of pharmaceuticals, as it was a developing country and also a country whose laws had no provisions for protection of patents of drug and pharmaceutical products. The TRIPS Agreement forced developing countries to adopt product patents on medicines. Prior to the negotiation of TRIPS, many countries excluded pharmaceuticals from patentability to keep prices down. India allowed only process patents, which could be used to reverse engineer the products.