The Pharmacy Act of 1948 was established in India to regulate the profession of pharmacy, addressing previous concerns of unqualified individuals compounding and dispensing medicines. It aims to standardize pharmacy education and ensure that only qualified individuals are registered as pharmacists. The act also details the composition and duties of the Pharmacy Council of India and the State Pharmacy Councils, including the approval of institutions, maintenance of a central register, and the establishment of penalties for various offenses in the profession.