United Nations Industrial Development Organization (UNIDO)director-general Carlos Alfredo Magarinos, during his recent whirlwind visit in Ahmedabad and Gandhinagar, said that India is likely to be in for a shock with the post-patent regime becoming a reality by January 2005, unless it takes care of the eventualities. However, he said, it should not be considered the end of the road, either.
Addressing a meeting of the Indian Drug Manufacturers' Association-Gujarat State Board (IDMA-GSB) and elsewhere, he said that since India like many other developing countries are signatories to the WTO, every country and their people would have to fend for themselves. For instance in the field of textiles, he said the demolition of Multi-Fiber Agreement (MFA) would offer a tremendous scope for developing countries. But China alone might capture 50 per cent of the world trade.
In India, the share of high-tech in the manufacturing sector has increased from 10% in 1980 to 60% now. But several other developing countries have also increased their competence on this count over this period.
He said that one of the eight major tasks of UNIDO is to prepare 'competitive index' for the developing countries, such as the capacity to incorporate high-tech in different sectors, the share of manufacturing sector in per capita GDP, the share of high-tech components in export and the share of export in per capita GDP.
India ranks fifth in the region in the four parameters set by UNIDO to measure a nation's competitiveness, a decade back and even now. Obviously, China and Indonesia are on the top.
Dr Magarinos said that Indian drug and pharmaceuticals industry is already quite developed, but there was an urgent need to boost Research and Development (R&D). It sometimes took 5-20 years to invent and develop a new product.
As per the UNIDO parameters, he said that at least 50% of the production should be by the Small and Medium Enterprises (SMEs). Since smaller units could not individually undertake R&D, they would have to do so in 'clusters' to be globally competitive.
He said there was also a tremendous scope for joint ventures between the private sector and Central and State governments. He cited the example of Kenya, Uganda and Tanzania, encircling the Lake Victoria, which have created 200,000 new jobs in clusters.
Dr Magarinos, who has visited nearly 85 countries during his short tenure in the world body, said that several such clusters were already functioning in India as in textiles, leather, common effluent treatment plants, gems and jewelry, but not all could be described as success stories.
He said that UNIDO's basic roles are transfer of technology, helping the nations increase the productivity of their natural resources for the betterment of the people, benchmarking development levels and helping nations achieve those benchmarks. One benchmark is to ensure SMEs contributed to 50% of the GDP.
In collaboration with IDMA-GSB, UNIDO proposed to set up a Pharma Techno Park in the outskirts of Ahmedabad, besides.
Speaking on the occasion, IDMA-GSB president Kamlesh Udani said that Gujarat contributed to 46% of the country's total production and 17% exports. He recalled the association's support to a study of UNIDO and Ahmedabad-based PERD Centre in identifying the problems areas in the drugs and pharmaceuticals industry.
As part of introducing Good Manufacturing Practices (GMP), Udani said IDMA-GSB has already introduced a 'Quality Circle', a 'Patent Cell', 'Factory Audit' system, technical network for quality up-gradation for ISO 9000/WHO-GMP/GMP in 21 firms in medical disposable and Ayurvedic units.
At the end of his hectic tour, UNIDO issued two joint statements, one to partner Government of Gujarat in a mega event, called "Vibrant Gujarat - Destination for Global Investments" to be held from September 28 to 30, 2003, and the other with Gujarat State Disaster Management Authority (GSDMA) to procure low-cost and quality cement and other building materials for the earthquake reconstruction programme.
Dr Magarinos also showed interest to revive the Inter-Regional Centre for Entrepreneurship and Investment Training being conducted at the Ahmedabad-based Entrepreneurship Development Institute of India (EDI) for evaluating the training programmes and implement the project in the Afro-Asian-Arab region.