Pharmaceutical industry representatives who were part of the an interactive session with industry associations and Union Finance Minister P Chidambaram here have stressed the need for government support in fostering innovation in R&D intensive industries. The pharmaceutical industry felt that the capital investment needs of innovation driven industry can be met only through creation of special funds for the purpose.

"High-technology industries like pharmaceuticals would be looking for venture funds to accelerate their technology acquisition, capacity development and R&D programmes. The government should think of public-private partnership ventures to support the industry requirements in this area," Habil F Khorakiwala, senior vice president, Federation of Indian Chambers of Commerce and Industry (FICCI) informed Pharmabiz.

Korakiwala, the chairman of Wockhardt Limited and former president, Indian Pharmaceutical Alliance (IPA) informed that the industry would be willing to partner with the government to provide temporary jobs for people through schemes like 100-day job schemes for unemployed. The industry has also urged the Finance Minister to promote special manufacturing clusters in backward districts and announce incentives similar to special economic zones for units setting up their manufacturing activities in such areas. "FICCI has identified 27 districts along with potential industries for such special clusters," Khorakiwala informed.

Speaking on the sidelines of the interactive session, Satish Reddy, managing director & chief operating officer, Dr. Reddy's Laboratories also agreed that "innovation" is the key to industrial growth in pharmaceutical sector. Terming the meeting as a positive gesture, he felt that any decision to support innovation in drug sector would benefit the country at large.

Addressing the session, Finance Minister expressed happiness over the fact that Indian companies are increasingly registering their global presence through acquisitions and higher outward foreign direct investment. "This will bring them the advantages of greater domain knowledge, economies of scale in marketing and best practice business knowledge, further enhancing the productivity growth of Indian business," he hoped.

The minister pointed out that the National Common Minimum Programme of the UPA Government has promised to take all necessary steps to revive industrial growth and put it on a robust footing and to give Indian industry every support to become productive and competitive, through a range of policies, including deregulation and incentives to boost private investment. "As stated in the NCMP, FDI will continue to be encouraged and actively sought, particularly in areas of infrastructure, high technology and exports and where local assets and employment are created on a significant scale," he added.