Internationalization of R&D (IRD)Internationalization of R&D (IRD)

Dr A R KidwaiDr A R Kidwai

Member of Parliament (Upper House)Member of Parliament (Upper House)IndiaIndia

INDIA’S S& T POLICY ON INDIA’S S& T POLICY ON INTERNATIONALIZATION OF R&DINTERNATIONALIZATION OF R&D

TO PROMOTE INTERNATIONAL SCIENCE AND TO PROMOTE INTERNATIONAL SCIENCE AND TECHNOLOGY COOPERATION TOWARDS TECHNOLOGY COOPERATION TOWARDS ACHIEVING THE GOALS OF NATIONAL ACHIEVING THE GOALS OF NATIONAL DEVELOPMENT AND SECURITY AND MAKE IT A DEVELOPMENT AND SECURITY AND MAKE IT A KEY ELEMENT OF INTERNATIONAL RELATIONS.KEY ELEMENT OF INTERNATIONAL RELATIONS.

SCIENTIFIC RESEARCH AND TECHNOLOGICAL SCIENTIFIC RESEARCH AND TECHNOLOGICAL DEVELOPMENT CAN BENEFIT GREATLY BY DEVELOPMENT CAN BENEFIT GREATLY BY INTERNATIONAL COOPERATION AND INTERNATIONAL COOPERATION AND COLLABORATION.COLLABORATION.

INTERNATIONALIZATION TREND IN INTERNATIONALIZATION TREND IN GLOBALISING R&D GLOBALISING R&D

R&D SPENDING ABROAD BY US AND OTHER R&D SPENDING ABROAD BY US AND OTHER DEVELOPED COUNTRIES RISING FASTER THAN DEVELOPED COUNTRIES RISING FASTER THAN DOMESTIC SPENDING. IBM AND HEWLETT-DOMESTIC SPENDING. IBM AND HEWLETT-PACKARD SPENDING 30% ON R&D OUTSIDE USA.PACKARD SPENDING 30% ON R&D OUTSIDE USA.

100 FOREIGN COMPANIES OF JAPAN, GERMANY, 100 FOREIGN COMPANIES OF JAPAN, GERMANY, UK, FRANCE AND SOUTH KOREA HAVE ABOUT 250 UK, FRANCE AND SOUTH KOREA HAVE ABOUT 250 R&D FACILITIES IN USA.R&D FACILITIES IN USA.

MORE THAN 100 R&D CENTERS SET UP IN INDIA MORE THAN 100 R&D CENTERS SET UP IN INDIA BY MNCs.BY MNCs.

Cont.//Cont.// EMPHASIS NOW SHIFTING TO EXTERNAL EMPHASIS NOW SHIFTING TO EXTERNAL

TECHNOLOGY ACQUISITION TO COMPLEMENT TECHNOLOGY ACQUISITION TO COMPLEMENT INTERNAL EFFORTS. INTERNAL EFFORTS.

FOR SUCCESS IN GLOBAL MARKET THE MOST FOR SUCCESS IN GLOBAL MARKET THE MOST IMPORTANT FACTOR IS TECHNICAL SKILLS TO IMPORTANT FACTOR IS TECHNICAL SKILLS TO PRODUCE SUPERIOR PRODUCTS AT PRODUCE SUPERIOR PRODUCTS AT COMPETITIVE RATES. COMPETITIVE RATES.

CONVENIENT MECHANISM FOR TECHNOLOGY CONVENIENT MECHANISM FOR TECHNOLOGY TRANSFER INSIDE AND ACROSS COUNTRIES.TRANSFER INSIDE AND ACROSS COUNTRIES.

FREE AND FLEXIBLE MOVEMENT OF R&D FREE AND FLEXIBLE MOVEMENT OF R&D PERSONNEL.PERSONNEL.

Cont.//Cont.//

SUITABLE TAXATION AND RELATED SUITABLE TAXATION AND RELATED ARRANGEMENTS IN RESPECT OF R&D.ARRANGEMENTS IN RESPECT OF R&D.

SUITABLE/APPROPRIATE LEGAL FRAMEWORK SUITABLE/APPROPRIATE LEGAL FRAMEWORK FOR FACILITATING COLLABORATIVE R&D AND FOR FACILITATING COLLABORATIVE R&D AND DISPUTE SETTLEMENT.DISPUTE SETTLEMENT.

INDIA’S S&T AGREEMENTINDIA’S S&T AGREEMENT

S&T AGREEMENTS WITH MORE THAN 50 COUNTRIES.S&T AGREEMENTS WITH MORE THAN 50 COUNTRIES. S&T AND IPR AGREEMENTS WITH FRANCE, EU AND S&T AND IPR AGREEMENTS WITH FRANCE, EU AND

RUSSIAN FEDERATION.RUSSIAN FEDERATION. JOINT R&D PROGRAMS ON MATERIAL SCIENCE, JOINT R&D PROGRAMS ON MATERIAL SCIENCE,

CELLULAR AND MOLECULAR BIOLOGY.CELLULAR AND MOLECULAR BIOLOGY. LASER AND ELECTRO-OPTICSLASER AND ELECTRO-OPTICS INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY MEDICAL SCIENCES AND HUMAN GENOME RESEARH.MEDICAL SCIENCES AND HUMAN GENOME RESEARH. GEOPHYSICESGEOPHYSICES

WHY R&D ALLIANCE WITH INDIA ?WHY R&D ALLIANCE WITH INDIA ?

US GIANT GE HAS A LARGE R&D SET UP IN US GIANT GE HAS A LARGE R&D SET UP IN INDIA. IT’S CEO OBSERVEDINDIA. IT’S CEO OBSERVED

“ “INDIA IS A DEVELOPING COUNTRY, BUT IT INDIA IS A DEVELOPING COUNTRY, BUT IT IS DEVELOPED COUNTRY AS REGARDS ITS IS DEVELOPED COUNTRY AS REGARDS ITS SUPERB SCIENTIFICINFRASTRUCTURE. IT IS SUPERB SCIENTIFICINFRASTRUCTURE. IT IS FOR THIS RERASON THAT WE WANT TO FOR THIS RERASON THAT WE WANT TO SHIFT A PART OF GE’S DEVELOPMENT SHIFT A PART OF GE’S DEVELOPMENT EFFORT TO INDIA”.EFFORT TO INDIA”.

LOW COST OF R&D. LOW COST OF R&D.

Cont.//Cont.// INDIA IS THE SECOND LARGEST WORLD INDIA IS THE SECOND LARGEST WORLD

MARKET. TEHREFORE, THE COMPANIES MARKET. TEHREFORE, THE COMPANIES THROUGH THEIR PRODUCTS SALE EARN MORE THROUGH THEIR PRODUCTS SALE EARN MORE THAN WHAT IS SPENT BY THEM ON R&D AND THAN WHAT IS SPENT BY THEM ON R&D AND THEIR PRODUCTION CENTER IN INIDA. THEIR PRODUCTION CENTER IN INIDA.

INDIA ALLOW FOREIGN INVESTORS 100% INDIA ALLOW FOREIGN INVESTORS 100% FOREIGN OWNERSHIP AND FULL FOREIGN OWNERSHIP AND FULL REPATRIATION OF CAPITAL AND PROFITS.REPATRIATION OF CAPITAL AND PROFITS.

INDIA HAS ALSO ACCEPTED R&D PROGRAMS INDIA HAS ALSO ACCEPTED R&D PROGRAMS UNDER THE CHAPTER ON TRADE IN SERVICES UNDER THE CHAPTER ON TRADE IN SERVICES OF WTO.OF WTO.

Cont.//Cont.// INDIA HAS A LARGE POOL OF ENGLISH INDIA HAS A LARGE POOL OF ENGLISH

SPEAKING SKILLED MANPOWER. SPEAKING SKILLED MANPOWER. INDIA’S TELECOM INFRASTRUCTURE IS INDIA’S TELECOM INFRASTRUCTURE IS

COMPARABLE TO THAT IN MANY COMPARABLE TO THAT IN MANY COUNTRIES.COUNTRIES.

INDIA’S GEOGRAPHICAL LOCATION INDIA’S GEOGRAPHICAL LOCATION ENABLES 24X7 SERVICE OFFERING. ENABLES 24X7 SERVICE OFFERING.

GOOD REGULATORY FRAMEWORK. GOOD REGULATORY FRAMEWORK. MORE THAN 100 R&D CENTERS SET UP IN MORE THAN 100 R&D CENTERS SET UP IN

INDIA BY MNCs.INDIA BY MNCs.

R&D ORGAINZATIONSR&D ORGAINZATIONS

ORGANIZATIONORGANIZATION NUMBER NUMBER STRENGTHSTRENGTH

1.1. CSIRCSIRLABS AND RES.LABS AND RES. 118118 SCIENTISTS 10, 934SCIENTISTS 10, 934

2.2. ICARICARAGRI. UNIV.AGRI. UNIV. 4343 SCIENTISTS 6,281SCIENTISTS 6,281R&D INST.R&D INST. 8989

3.3. ICMRICMRR&D INST./CENT.R&D INST./CENT. 2626 SCIENTISTSSCIENTISTS 732 732

Cont.//Cont.//

4.4. DBTDBTR&D INST. R&D INST. 88 SCIENTISTS 700SCIENTISTS 700

5.5. DRDODRDOR&D INST.R&D INST. 5252 SCIENTISTS 6,500SCIENTISTS 6,500

66 DAE.DAE.R&D INST.R&D INST. 17 17 SCIENTISTS 5,000SCIENTISTS 5,000

7.7. DOSDOSISROISRO SCIENTISTS 10,000SCIENTISTS 10,000

INSTITUTIONS OF HIGER EDUCATION (2001)INSTITUTIONS OF HIGER EDUCATION (2001)

1.1. HIGHER EDUCATIONHIGHER EDUCATION NUMBER NUMBER STRENGTHSTRENGTHUNIVERSITIESUNIVERSITIES 253 253 FACULTY 411,628FACULTY 411,628COLLEGESCOLLEGES 13,150 STUDENTS 8,399,433 13,150 STUDENTS 8,399,433

SC STUDENTS 1,670,273SC STUDENTS 1,670,2732.2. ENGINEERING EDUCATIONENGINEERING EDUCATION HIGHER EDUCATION &RES.HIGHER EDUCATION &RES.

IITsIITs 7 7 FACULTY FACULTY 2,5002,500STUDENTSSTUDENTS 23,00023,000

ENGG.COLLEGESENGG.COLLEGES STUDENTS STUDENTS 463,965463,965DEGREEDEGREE 13471347 DEGREEDEGREE 262,882262,882DIPLOMADIPLOMA 12281228 DIPLOMADIPLOMA 201,093201,093

Cont.//Cont.//

3.3. MEDICAL EDUCATIONMEDICAL EDUCATION

MEDICAL COLLEGES MEDICAL COLLEGES 189189 STUDENTS 18,168STUDENTS 18,168

PG STUDENTS PG STUDENTS 3,1813,181

PG DIPLOMAPG DIPLOMA 1,3161,316

INDIAN SOFTWARE INDUSTRYINDIAN SOFTWARE INDUSTRY

EXPORT EARNINGS IN 2003-04 US $ 12.7 BILLIONEXPORT EARNINGS IN 2003-04 US $ 12.7 BILLION

GROWTH RATE 26% DESPITE SLOWDOWN.GROWTH RATE 26% DESPITE SLOWDOWN. EXPORTS TO 95 COUNTRIES. MAJOR COUNTRIES:EXPORTS TO 95 COUNTRIES. MAJOR COUNTRIES:

USA, UK, GERMANY, FRANCE, JAPAN, CHINA USA, UK, GERMANY, FRANCE, JAPAN, CHINA HONKONG, TAIWAN AND SOUTH KOREA.HONKONG, TAIWAN AND SOUTH KOREA.

THE CLIENTS INCLUDE MORE THAN 250 OF THE CLIENTS INCLUDE MORE THAN 250 OF FORTUNE 500 COMPANIES.FORTUNE 500 COMPANIES.

ESTIMATED EXPORTS FOR 2008ESTIMATED EXPORTS FOR 2008

SERVICESSERVICES US $ IN US $ IN BILLIONBILLION

____________________________________________________________________________________

IT SERVICESIT SERVICES 2323

SOFTWARE PRODUCTSSOFTWARE PRODUCTS 88

IT-ENABLED SERVICESIT-ENABLED SERVICES 1515

E-BUSINESSE-BUSINESS 44

TOTALTOTAL 50 50

Cont..//Cont..//

The above data shows how development The above data shows how development of software industry in India has greatly of software industry in India has greatly contributed to promotion of specialized contributed to promotion of specialized services in sectors of finance, banking services in sectors of finance, banking solutions, security knowledge, solutions, security knowledge, management and customer relation management and customer relation services where expertise is sought from services where expertise is sought from India by overseas countries.India by overseas countries.

SOTWARE ADVANTAGE INDIASOTWARE ADVANTAGE INDIA

LOW COST QUALITY MANPOWERLOW COST QUALITY MANPOWER HIGH QUALITY WORK DELIVERY.HIGH QUALITY WORK DELIVERY. WELL-DEVELOPED INFRASTRUCTURE WELL-DEVELOPED INFRASTRUCTURE

SUPPORT TO AID CONNECTIVITY AND SUPPORT TO AID CONNECTIVITY AND DATA TRANSFER.DATA TRANSFER.

GROWTH OF INFORMATION TECHNOLOGY GROWTH OF INFORMATION TECHNOLOGY ENABLED SERVICES (ITES)ENABLED SERVICES (ITES)

INDIAN PHARMA POLICY- 2002INDIAN PHARMA POLICY- 2002

100% FOREIGN INVESTMENT AUTOMATICALLY 100% FOREIGN INVESTMENT AUTOMATICALLY PERMITTED. PERMITTED.

FOREIGN TECHNLOGY AGREEMENTS-FOREIGN TECHNLOGY AGREEMENTS-AUTOMATIC APPROVAL THROUGH RESERVE AUTOMATIC APPROVAL THROUGH RESERVE BANK OF INDIA. BANK OF INDIA.

ABOLITION OF INDUSTRIAL LICENSING FOR ABOLITION OF INDUSTRIAL LICENSING FOR ALL BULK DRUGS, INERMEDIARIES AND ALL BULK DRUGS, INERMEDIARIES AND FORMULATIONS. FORMULATIONS.

Cont.//Cont.//

DRUG CONTROL RESTRICTED ONLY TO DRUG CONTROL RESTRICTED ONLY TO ESSENTIAL DRUGS TO DEAL WITH ESSENTIAL DRUGS TO DEAL WITH DISEASES LIKE TB, MALARIA AND DISEASES LIKE TB, MALARIA AND DIABETES (INSULIN).DIABETES (INSULIN).

THE ONLY EXCEPTION—THE DRUGS THE ONLY EXCEPTION—THE DRUGS BASED ON DNA TECHNOLOGY HAVE TO BASED ON DNA TECHNOLOGY HAVE TO BE CLEARED FOR POTENTIAL HEALTH BE CLEARED FOR POTENTIAL HEALTH AND ENVIRONMENTAL RISKS.AND ENVIRONMENTAL RISKS.

EMERGING TRENDSEMERGING TRENDS FOREIGN DIRECT INVESTMENT (FDI) PERMITTED FOREIGN DIRECT INVESTMENT (FDI) PERMITTED

UP TO 100% THROUGH AUTOMATIC ROUTES.UP TO 100% THROUGH AUTOMATIC ROUTES. INDIA AGREED TO IMPLEMENT A PRODUCT INDIA AGREED TO IMPLEMENT A PRODUCT

PATENT REGIME WITH EFFECT FROM 1PATENT REGIME WITH EFFECT FROM 1STST JUANUARY 2005 AS PER WTO AGREEMENT. JUANUARY 2005 AS PER WTO AGREEMENT.

MNCs HAVE STARTED STRENGTHENING THEIR MNCs HAVE STARTED STRENGTHENING THEIR BUSINESS IN INDIA. THEY HAVE INCREASED BUSINESS IN INDIA. THEY HAVE INCREASED STAKES IN EXISTING VENTURES OR SET UP NEW STAKES IN EXISTING VENTURES OR SET UP NEW WHOLLY OWNED SUBSIDIARIES (e.g. PFIZER)WHOLLY OWNED SUBSIDIARIES (e.g. PFIZER)

Cont.//Cont.//

INCREASED FOCUS BY INDIAN PHARMA INCREASED FOCUS BY INDIAN PHARMA COMPANIES ON R&D.COMPANIES ON R&D.

R&D CAN BE PERFORMED IN INDIA AT 15-20% R&D CAN BE PERFORMED IN INDIA AT 15-20% OF THE COST IN EUROPE OR USA. ON DOLLAR OF THE COST IN EUROPE OR USA. ON DOLLAR BASIS THE COST ADVANTAGE IS ABOUT 10-15 BASIS THE COST ADVANTAGE IS ABOUT 10-15 TIMES. TIMES.

THE INDIAN COMPANIES ARE PURSUING THE INDIAN COMPANIES ARE PURSUING CONTRACT MANUFACTURING FOR SUPPLY OF CONTRACT MANUFACTURING FOR SUPPLY OF BULK DRUGS/INTERMEDIATES FOR MNCs.BULK DRUGS/INTERMEDIATES FOR MNCs.

Cont.//Cont.// WITH LOW COST OF PRODUCTION, INDIA WITH LOW COST OF PRODUCTION, INDIA

HAS BECOME A BASE FOR OUTSOURCING HAS BECOME A BASE FOR OUTSOURCING DRUGS.DRUGS.

INDIAN COMPANIES SETTING UP INDIAN COMPANIES SETTING UP SUBSIDARIES ABROAD OR SEEKING SUBSIDARIES ABROAD OR SEEKING STRATEGIC ALLIANCES TO EXPLORE STRATEGIC ALLIANCES TO EXPLORE TREMENDOUS OPPURTUNITIES IN THE TREMENDOUS OPPURTUNITIES IN THE GENERICS MARKET EXPECTED IN THE NEXT GENERICS MARKET EXPECTED IN THE NEXT 5-10 YEARS.5-10 YEARS.

INDIA--A GLOBAL HUB FOR TESTING INDIA--A GLOBAL HUB FOR TESTING AND DEVELOPMENT OF NEW DRUGSAND DEVELOPMENT OF NEW DRUGS

PHARMA INDUSTRY TODAY TAKES $300-700 PHARMA INDUSTRY TODAY TAKES $300-700 MILLION AND 10-15 YEARS TO INTRODUCE A MILLION AND 10-15 YEARS TO INTRODUCE A NEW DRUG IN THE MARKET. NEW DRUG IN THE MARKET.

A LARGE POOL OF WELL QUALIFIED AND A LARGE POOL OF WELL QUALIFIED AND SKILLED MANPOWER AVAILABLE AT LOW COST. SKILLED MANPOWER AVAILABLE AT LOW COST.

AVAILABILITY OF LARGE NUMBER OF PATIENTS AVAILABILITY OF LARGE NUMBER OF PATIENTS WITH ALL FORMS OF DISEASES.WITH ALL FORMS OF DISEASES.

ALSO PATIENTS AVAILABLE WHO HAVE NOT ALSO PATIENTS AVAILABLE WHO HAVE NOT RECEIVED ANY OTHER MEDICAL TREATMENT. RECEIVED ANY OTHER MEDICAL TREATMENT.

Cont.//Cont.//

CLINICAL TRIALS COST HALF OR ONE THIRD CLINICAL TRIALS COST HALF OR ONE THIRD OF A DEVELOPED COUNTRY AND TAKES OF A DEVELOPED COUNTRY AND TAKES MUCH LESS TIME TO COMLETE. MUCH LESS TIME TO COMLETE.

REGULATIONS PERMIT TESTING OF NEW REGULATIONS PERMIT TESTING OF NEW DRUGS WITH NECESSARY PROTECTIVE DRUGS WITH NECESSARY PROTECTIVE MEASURES. MEASURES.

BIOTECHNOLOGY IN INDIABIOTECHNOLOGY IN INDIA

SKILLED MANPOWERSKILLED MANPOWERGRADUATES GRADUATES 3,000,0003,000,000POST-GRADUATESPOST-GRADUATES 70,00070,000Ph.DsPh.Ds 1,5001,500

CONVENTIONAL BIOTECH. COMPANIESCONVENTIONAL BIOTECH. COMPANIES 110110MODERN BIOTECH. COMPANIESMODERN BIOTECH. COMPANIES 6060

BIOTECH ASSOCIATED INSTITUTIONSBIOTECH ASSOCIATED INSTITUTIONSRESEARCH INSTITUTEIONSRESEARCH INSTITUTEIONS 241241INDUSTRIESINDUSTRIES 328328

Cont.//Cont.//

CONSUMPTION OF BIOTECH.CONSUMPTION OF BIOTECH.

PRODUCTS IN 1999PRODUCTS IN 1999 US $ 1.79 US $ 1.79 BN.BN.

PROJECTED CONSUMPTION IN 2005PROJECTED CONSUMPTION IN 2005 US $ 3.72 US $ 3.72 BN.BN.

PROJECTED CONSUMPTION IN 2010PROJECTED CONSUMPTION IN 2010 US $ 4.27 US $ 4.27 BN.BN.

MAIN ACTITIVITES AND POTENTIALMAIN ACTITIVITES AND POTENTIAL

RICH BIODIVERSITY-INDIA HAS 7.76% OF RICH BIODIVERSITY-INDIA HAS 7.76% OF TOTAL MAMMAL SPECIES 12.6% OF BIRD TOTAL MAMMAL SPECIES 12.6% OF BIRD SPECIES, 11.7% OF FISH AND ROUGHLY 6.0% OF SPECIES, 11.7% OF FISH AND ROUGHLY 6.0% OF TOTAL FLOWERING PLANTS PRESENT IN THE TOTAL FLOWERING PLANTS PRESENT IN THE WORLD WITH EXCELLENT AGRO-CLIMATIC WORLD WITH EXCELLENT AGRO-CLIMATIC CONDITIONS. THIS IS A GREAT RESOURCE FOR CONDITIONS. THIS IS A GREAT RESOURCE FOR RESEARCH AND DEVLOPMENTAL ACTIVITIES RESEARCH AND DEVLOPMENTAL ACTIVITIES IN BIOTECHNOLOGY. IN BIOTECHNOLOGY.

FOCUS– GENOMICS, RECOMBINANT DNA, FOCUS– GENOMICS, RECOMBINANT DNA, TRANSGENICS. STEM CELL RESEARCH AND TRANSGENICS. STEM CELL RESEARCH AND NEW DRUGS DEVELOPMENT. NEW DRUGS DEVELOPMENT.

Cont.//Cont.// VACCINEVACCINE MARKETMARKET AROUND US $ 100 Mn. AROUND US $ 100 Mn.

VALUEDVALUED

GROWTHGROWTH 20%20%RATERATE

DIAGNOSTICSDIAGNOSTICS MARKET DEMAND US $ 50 Mn.MARKET DEMAND US $ 50 Mn.DEMAND GROWING RAPIDLYDEMAND GROWING RAPIDLY

ANIMAL HEALTHANIMAL HEALTH BIOTECHNOLOGY MARKETBIOTECHNOLOGY MARKETRAPIDLY GROWINGRAPIDLY GROWING

ENZYMESENZYMES 70% REQUIREMENT IMPORTED70% REQUIREMENT IMPORTEDMARKET GROWING WITH MARKET GROWING WITH INCREASING AWARENESS INCREASING AWARENESS

Cont.//Cont.// PHARMAPHARMA TODAY 40-45% OF ALL DRUG ORIGINATETODAY 40-45% OF ALL DRUG ORIGINATE

INDUSTRYINDUSTRY IN BIO-TECHNOLOGY BUT IN THE NEXT IN BIO-TECHNOLOGY BUT IN THE NEXT

DECADES BIOTECHNOLOGY WILL HAVEDECADES BIOTECHNOLOGY WILL HAVE

A MUCH GREATER ROLE ON THE PROD-A MUCH GREATER ROLE ON THE PROD-

UCTION OF DRUGS AND PHARMACUET-UCTION OF DRUGS AND PHARMACUET-

CALS.CALS. FERMENTATIONFERMENTATION MODEST FERMENTATAION INDUSTRY MODEST FERMENTATAION INDUSTRY

INDUSTRY INDUSTRY MAINLY BREWERIE,MAINLY BREWERIE,

ANTIBIOTICS AND CHEMICALSANTIBIOTICS AND CHEMICALS

BUT GREAT POTENTIAL IN THE BUT GREAT POTENTIAL IN THE AREAS OF –FOOD PROCESING,AREAS OF –FOOD PROCESING,

PHARMA AND CHEMICALS. PHARMA AND CHEMICALS.

Cont.//Cont.// FOOD FOOD INDIA IS THE LARGEST PRODUCERINDIA IS THE LARGEST PRODUCER

PROCESSINGPROCESSING OF MILK AND SECOND LARGESTOF MILK AND SECOND LARGEST

INDUSTRYINDUSTRY PROCUCER OF FRUITS, VEGETABLESPROCUCER OF FRUITS, VEGETABLES

AND FOODGRAINS. BUT PROCESSING AND FOODGRAINS. BUT PROCESSING

IS LIMITED TO ONLY 2% OF FRUITS AND IS LIMITED TO ONLY 2% OF FRUITS AND

VEGETABLES AND 15% MILK. THUS,VEGETABLES AND 15% MILK. THUS,

TREMENDOUS SCOPE FOR THE TREMENDOUS SCOPE FOR THE DEVELOPMENT OF PROCESSING OF MILKDEVELOPMENT OF PROCESSING OF MILK

FRUITS &VEGETABLES, MEAT, FISH ANDFRUITS &VEGETABLES, MEAT, FISH AND

FOODGRAINSFOODGRAINS

Cont.//Cont.//

AGRI-BIOTECH.AGRI-BIOTECH. -GENETICALLY ENGINEERED -GENETICALLY ENGINEERED SEEDS AND PLANTS HAVE A SEEDS AND PLANTS HAVE A MARKET OF US $ 250 Mn..MARKET OF US $ 250 Mn..-DEVELOPMENT OF TRANSGENICS -DEVELOPMENT OF TRANSGENICS FOR QUALITY AND CHARACTERS.FOR QUALITY AND CHARACTERS.-DEVELOPMENT OF TRANSGENICS -DEVELOPMENT OF TRANSGENICS WITH RESISTANCE TO DROUGHTWITH RESISTANCE TO DROUGHTAND OTHER ABIOTIC STRESSES.AND OTHER ABIOTIC STRESSES.-TISSUE CULTURE FOR -TISSUE CULTURE FOR PROPAGATION OF PLANTS.PROPAGATION OF PLANTS.-DEVELOPMENT OF MEDICINAL-DEVELOPMENT OF MEDICINAL AND AND

OTHER AROMATIC PLANTS. OTHER AROMATIC PLANTS.

ADVANTAGE INDIAADVANTAGE INDIA NO INDUSTRIAL LICENCE REQUIRED FOR FOODS NO INDUSTRIAL LICENCE REQUIRED FOR FOODS

EXCEPT ALCHOHLIC PRODUCTS.EXCEPT ALCHOHLIC PRODUCTS. NATIONAL POLICY TO INCREASE FOOD PROCESSING NATIONAL POLICY TO INCREASE FOOD PROCESSING

FROM PRESENT 2% TO 10% BY 2010.FROM PRESENT 2% TO 10% BY 2010. INVESTMENT OPPORTUNITIES:INVESTMENT OPPORTUNITIES:

UPTO 51% FOREIGN EQUITY—AUTOMATIC APPROVAL.UPTO 51% FOREIGN EQUITY—AUTOMATIC APPROVAL. UPTO 100% EQUITY ALLOWED ON APPROVAL UNDER UPTO 100% EQUITY ALLOWED ON APPROVAL UNDER

FOREIGN DIRECT INVESTMENT (FDI) SCHEME EXCEPT FOREIGN DIRECT INVESTMENT (FDI) SCHEME EXCEPT MALTED FOOD, ALCHOHOLIC BEVERAGES.MALTED FOOD, ALCHOHOLIC BEVERAGES.

CUSTOM DUTIES SUBSTANTIALLY REDUCED ON PLANT CUSTOM DUTIES SUBSTANTIALLY REDUCED ON PLANT AND EQUIPMENT, RAW MATERIALS AND AND EQUIPMENT, RAW MATERIALS AND INTERMEDIARIES.INTERMEDIARIES.

CHEMICALS PESICIDES AND ALLIED CHEMICALS PESICIDES AND ALLIED INDUSTRIESINDUSTRIES

INDIA IS SELF-SUFFICIENT IN MEETING LOCAL INDIA IS SELF-SUFFICIENT IN MEETING LOCAL DEMANDS.DEMANDS.

CHEMICAL INDUSTRY IS HIGHLY HETEROGENIOUS CHEMICAL INDUSTRY IS HIGHLY HETEROGENIOUS

COVERING SECTORS LIKE ORGAINIC, INORGANICCOVERING SECTORS LIKE ORGAINIC, INORGANIC

CHEMICALS, DYESTUFF, PAINTS , PESTICIDES, ETC.CHEMICALS, DYESTUFF, PAINTS , PESTICIDES, ETC. THE PESTICIDE INDUSTRY HAS DEVELOPED THE PESTICIDE INDUSTRY HAS DEVELOPED

SUBSTANTIALLY CONTRIBUTING TOWARDS SUBSTANTIALLY CONTRIBUTING TOWARDS AGRICULTURE AND HEALTH.AGRICULTURE AND HEALTH.

PETROCHEMICALS INDUSTRYPETROCHEMICALS INDUSTRY

RAPID STRIDES IN TERMS OF PRODUCTION ANDRAPID STRIDES IN TERMS OF PRODUCTION ANDCONSUMPTIONCONSUMPTION

(FIGS IN KT)(FIGS IN KT)CATEGORYCATEGORY 1997-981997-98 1998-991998-99 1999-20001999-2000

(Actual)(Actual) (Actual)(Actual) (Actual)(Actual)Prod. Prod. Cons.Cons. Prod ConsProd Cons Prod. Prod.

________________________________________________________________________________________________SYNTHETICSYNTHETIC 12461246 12571257 1379 1420 1379 1420 15251525FIBREFIBREPOLYMERPOLYMER 20162016 23982398 21892189 27192719 2805 2805SYNTHETIC SYNTHETIC 6262 105105 5454 106106 5555RUBBERRUBBERSYNTHETICSYNTHETIC 251251 245245 282282 272272 320320DETERGENTSDETERGENTS

EXPORT OF CHEMICALSEXPORT OF CHEMICALS

STEADY GROWTH IN EXPORTS OF CHEMICALS STEADY GROWTH IN EXPORTS OF CHEMICALS DURING THE LAST THREE YEARS .DURING THE LAST THREE YEARS .

1996-971996-97 1997-1997-9898

(US $ IN (US $ IN MILLIONS)MILLIONS)

________________________________________________________________________________________________________________

DYES AND DYE INTERMEDIATESDYES AND DYE INTERMEDIATES 388.8388.8 445.6445.6

BASIC ORGANICS & INORGANICSBASIC ORGANICS & INORGANICS 416.2416.2 439.0439.0

CHEMICALS INCLUDING CHEMICALS INCLUDING

AGROCHEMICALSAGROCHEMICALS