Indian pharmaceutical industry should combine the swadeshi spirit with global technologies to intensify its focus on Research and Development, L K Advani, Deputy Prime Minister has said. He called on the industry to develop an Indian model of cooperative R&D to develop new drugs. 'While no single Indian drug company can develop and market new drugs on its own, they can develop a shared and cooperative model for R&D', he suggested.

Speaking at the inaugural function of India Chem 2002 which will be held at Pragati Maidan, New Delhi, from September 18-21 on Tuesday, Advani wanted the institutions, drug industry, universities and researchers to join together to develop such an effective system to develop new drugs from India. The minister also emphasized the role of the small-scale drug-manufacturing sector and admitted that they are often victims of 'inspector raj'. He also pointed out the need for enabling the SSI sector to meet their financial as well as R&D needs. He said that the government has to apply its mind to see that the SSIs, who mostly serve the local market, are also protected.

The deputy PM said that Indian companies like Ranbaxy, Cipla and Dr Reddys are making rapid strides in news drugs discovery. He was also optimistic about the growth of biotech industry in the country. The minister wanted the country to optimally integrate its strengths in Information Technology with pharmaceutical R&D to come out with digital R&D in drugs sector.

The Union Minister for Chemicals and Pharmaceuticals S S Dhindsa, in his address said that India Chem 2002 is an attempt to integrate Indian chemical industry with the global chemical industrial sector. He said that the fair would give rise to many joint ventures and also invite large multinational investment in the segment in India.

According to Dhindsa, "Given that 79 foreign companies have confirmed participation in India Chem 2002, this will provide an ideal platform for global majors to appreciate the strengths of Indian companies. This interaction will lead to tie-ups in the coming years."

India Chem 2002 is India's largest exposition on Chemicals, Petrochemicals, Pharmaceutical technologies, Process Plant Machinery Control and Automation System. The event is being jointly organized by the Federation of Indian Chambers for Commerce and Industry (FICCI) and the Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Govt. of India and is also supported by 20 related Industry Associations.

Notwithstanding the global slowdown, India Chem 2002 has seen a massive participation from companies across the globe. And its not just the one-billion strong market, which is enticing them, but also the international recognition India has achieved due to its strengths and comparative cost advantage in knowledge based industries.

Speaking at the function, Tapan Sikdar, Minister of State for Chemicals and Fertilizers, also expressed confidence that the interactions between the Indian and foreign companies at India Chem 2002 will go a long way in forging new relationships. "India's strength in process chemistry and manufacturing makes it an ideal place for the multi-national companies to source their products, so most global giants have either set up base in India or are sourcing their requirements from India," he added.

Sikdar pointed out, "Chemical industry contributes 14 per cent of the total output of the manufacturing sector. The growth of the manufacturing sector has been between 10-15 per cent per annum during the last decade, which is double the growth rate of our GDP. During the last year, the exports from this sector were Rs 22,657 crore, which was 11.5 per cent of the total export of all commodities from India. The growth in exports has continued despite stiff competition from other countries."

German Ambassador Mr Heimo Richter, who was also present at the occasion, said, "Over 25 per cent of German foreign direct investment (FDI) goes into chemical and petrochemical industry in India. Chemical industry in India has witnessed outstanding growth rates - which is an attractive factor. German companies present at India Chem 2002, see possibilities for cooperation in investment and exports."

The office bearers of FICCI were also present at the occasion. Over 233 companies are participating in India Chem 2002. 79 participants are from abroad and 144 from India.