 TO PROMOTE INTERNATIONAL SCIENCE AND
TECHNOLOGY COOPERATION TOWARDS
ACHIEVING THE GOALS OF NATIONAL
DEVELOPMENT AND SECURITY AND MAKE IT A
KEY ELEMENT OF INTERNATIONAL RELATIONS.
 SCIENTIFIC RESEARCH AND TECHNOLOGICAL
DEVELOPMENT CAN BENEFIT GREATLY BY
INTERNATIONAL COOPERATION AND
COLLABORATION.

 R&D SPENDING ABROAD BY US AND OTHER
DEVELOPED COUNTRIES RISING FASTER THAN
DOMESTIC SPENDING. IBM AND HEWLETT-
PACKARD SPENDING 30% ON R&D OUTSIDE USA.
 100 FOREIGN COMPANIES OF JAPAN, GERMANY,
UK, FRANCE AND SOUTH KOREA HAVE ABOUT 250
R&D FACILITIES IN USA.
 MORE THAN 100 R&D CENTERS SET UP IN INDIA BY
MNCs.

 EMPHASIS NOW SHIFTING TO EXTERNAL
TECHNOLOGY ACQUISITION TO COMPLEMENT
INTERNAL EFFORTS.
 FOR SUCCESS IN GLOBAL MARKET THE MOST
IMPORTANT FACTOR IS TECHNICAL SKILLS TO
PRODUCE SUPERIOR PRODUCTS AT
COMPETITIVE RATES.
 CONVENIENT MECHANISM FOR TECHNOLOGY
TRANSFER INSIDE AND ACROSS COUNTRIES.
 FREE AND FLEXIBLE MOVEMENT OF R&D
PERSONNEL.

 SUITABLE TAXATION AND RELATED
ARRANGEMENTS IN RESPECT OF R&D.
 SUITABLE/APPROPRIATE LEGAL FRAMEWORK
FOR FACILITATING COLLABORATIVE R&D AND
DISPUTE SETTLEMENT.




S&T AGREEMENTS WITH MORE THAN 50 COUNTRIES.
S&T AND IPR AGREEMENTS WITH FRANCE, EU AND
RUSSIAN FEDERATION.
JOINT R&D PROGRAMS ON MATERIAL SCIENCE,
CELLULAR AND MOLECULAR BIOLOGY.


LASER AND ELECTRO-OPTICS
INFORMATION TECHNOLOGY
 MEDICAL SCIENCES AND HUMAN GENOME RESEARH.
 GEOPHYSICES



US GIANT GE HAS A LARGE R&D SET UP IN
INDIA. IT’S CEO OBSERVED
“
INDIA IS A DEVELOPING COUNTRY, BUT IT
IS DEVELOPED COUNTRY AS REGARDS ITS
SUPERB SCIENTIFICINFRASTRUCTURE. IT IS
FOR THIS RERASON THAT WE WANT TO
SHIFT A PART OF GE’S DEVELOPMENT
EFFORT TO INDIA”.
 LOW COST OF R&D.

 INDIA IS THE SECOND LARGEST WORLD
MARKET. TEHREFORE, THE COMPANIES
THROUGH THEIR PRODUCTS SALE EARN MORE
THAN WHAT IS SPENT BY THEM ON R&D AND
THEIR PRODUCTION CENTER IN INIDA.
 INDIA ALLOW FOREIGN INVESTORS 100%
FOREIGN OWNERSHIP AND FULL REPATRIATION
OF CAPITAL AND PROFITS.
 INDIA HAS ALSO ACCEPTED R&D PROGRAMS
UNDER THE CHAPTER ON TRADE IN SERVICES
OF WTO.




INDIA HAS A LARGE POOL OF ENGLISH
SPEAKING SKILLED MANPOWER.
INDIA’S TELECOM INFRASTRUCTURE IS
COMPARABLE TO THAT IN MANY
COUNTRIES.
INDIA’S GEOGRAPHICAL LOCATION
ENABLES 24X7 SERVICE OFFERING.
 GOOD REGULATORY FRAMEWORK.
 MORE THAN 100 R&D CENTERS SET UP IN
INDIA BY MNCs.

NUMBER STRENGTH ORGANIZATION
1.
CSIR
LABS AND RES.
2.
3.
ICAR
AGRI. UNIV.
R&D INST.
ICMR
R&D INST./CENT.
118
43
89
26
SCIENTISTS 10, 934
SCIENTISTS 6,281
SCIENTISTS 732

4.
5.
6
7.
DBT
R&D INST.
DRDO
R&D INST.
DAE.
R&D INST.
DOS
ISRO
8 SCIENTISTS 700
52 SCIENTISTS 6,500
17 SCIENTISTS 5,000
SCIENTISTS 10,000

1.
2.


INSTITUTIONS OF HIGER EDUCATION (2001)
HIGHER EDUCATION NUMBER STRENGTH
UNIVERSITIES
COLLEGES
253 FACULTY 411,628
13,150 STUDENTS 8,399,433
SC STUDENTS 1,670,273
ENGINEERING EDUCATION
HIGHER EDUCATION &RES.
IITs 7 FACULTY 2,500
STUDENTS 23,000
STUDENTS 463,965 ENGG.COLLEGES
DEGREE
DIPLOMA
1347
1228
DEGREE
DIPLOMA
262,882
201,093

3.
MEDICAL EDUCATION
MEDICAL COLLEGES 189 STUDENTS 18,168
PG STUDENTS 3,181
PG DIPLOMA 1,316

 EXPORT EARNINGS IN 2003-04 US $ 12.7 BILLION
GROWTH RATE 26% DESPITE SLOWDOWN.
 EXPORTS TO 95 COUNTRIES. MAJOR COUNTRIES:
USA, UK, GERMANY, FRANCE, JAPAN, CHINA
HONKONG, TAIWAN AND SOUTH KOREA.
 THE CLIENTS INCLUDE MORE THAN 250 OF
FORTUNE 500 COMPANIES.

SERVICES US $ IN BILLION
__________________________________________
IT SERVICES 23
SOFTWARE PRODUCTS
IT-ENABLED SERVICES
E-BUSINESS
TOTAL
8
15
4
50

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

 LOW COST QUALITY MANPOWER
 HIGH QUALITY WORK DELIVERY.
 WELL-DEVELOPED INFRASTRUCTURE
SUPPORT TO AID CONNECTIVITY AND
DATA TRANSFER.
 GROWTH OF INFORMATION TECHNOLOGY
ENABLED SERVICES (ITES)

 100% FOREIGN INVESTMENT AUTOMATICALLY
PERMITTED.
 FOREIGN TECHNLOGY AGREEMENTS-
AUTOMATIC APPROVAL THROUGH RESERVE
BANK OF INDIA.
 ABOLITION OF INDUSTRIAL LICENSING FOR
ALL BULK DRUGS, INERMEDIARIES AND
FORMULATIONS.

 DRUG CONTROL RESTRICTED ONLY TO
ESSENTIAL DRUGS TO DEAL WITH
DISEASES LIKE TB, MALARIA AND
DIABETES (INSULIN).
 THE ONLY EXCEPTION—THE DRUGS
BASED ON DNA TECHNOLOGY HAVE TO BE
CLEARED FOR POTENTIAL HEALTH AND
ENVIRONMENTAL RISKS.

 FOREIGN DIRECT INVESTMENT (FDI) PERMITTED
UP TO 100% THROUGH AUTOMATIC ROUTES.
 INDIA AGREED TO IMPLEMENT A PRODUCT
PATENT REGIME WITH EFFECT FROM 1 ST
JUANUARY 2005 AS PER WTO AGREEMENT.
 MNCs HAVE STARTED STRENGTHENING THEIR
BUSINESS IN INDIA. THEY HAVE INCREASED
STAKES IN EXISTING VENTURES OR SET UP NEW
WHOLLY OWNED SUBSIDIARIES (e.g. PFIZER)

 INCREASED FOCUS BY INDIAN PHARMA
COMPANIES ON R&D.
 R&D CAN BE PERFORMED IN INDIA AT 15-20%
OF THE COST IN EUROPE OR USA. ON DOLLAR
BASIS THE COST ADVANTAGE IS ABOUT 10-15
TIMES.
 THE INDIAN COMPANIES ARE PURSUING
CONTRACT MANUFACTURING FOR SUPPLY OF
BULK DRUGS/INTERMEDIATES FOR MNCs.

 WITH LOW COST OF PRODUCTION, INDIA
HAS BECOME A BASE FOR OUTSOURCING
DRUGS.
 INDIAN COMPANIES SETTING UP
SUBSIDARIES ABROAD OR SEEKING
STRATEGIC ALLIANCES TO EXPLORE
TREMENDOUS OPPURTUNITIES IN THE
GENERICS MARKET EXPECTED IN THE NEXT
5-10 YEARS.

 PHARMA INDUSTRY TODAY TAKES $300-700
MILLION AND 10-15 YEARS TO INTRODUCE A
NEW DRUG IN THE MARKET.
 A LARGE POOL OF WELL QUALIFIED AND
SKILLED MANPOWER AVAILABLE AT LOW COST.
 AVAILABILITY OF LARGE NUMBER OF PATIENTS
WITH ALL FORMS OF DISEASES.
 ALSO PATIENTS AVAILABLE WHO HAVE NOT
RECEIVED ANY OTHER MEDICAL TREATMENT.

 CLINICAL TRIALS COST HALF OR ONE THIRD
OF A DEVELOPED COUNTRY AND TAKES MUCH
LESS TIME TO COMLETE.
 REGULATIONS PERMIT TESTING OF NEW
DRUGS WITH NECESSARY PROTECTIVE
MEASURES.

 SKILLED MANPOWER
GRADUATES
POST-GRADUATES
3,000,000
70,000
Ph.Ds
1,500
 CONVENTIONAL BIOTECH. COMPANIES 110
MODERN BIOTECH. COMPANIES 60
 BIOTECH ASSOCIATED INSTITUTIONS
RESEARCH INSTITUTEIONS 241
INDUSTRIES 328

 CONSUMPTION OF BIOTECH.
PRODUCTS IN 1999 US $ 1.79 BN.
PROJECTED CONSUMPTION IN 2005 US $ 3.72 BN.
PROJECTED CONSUMPTION IN 2010 US $ 4.27 BN.

 RICH BIODIVERSITY-INDIA HAS 7.76% OF TOTAL
MAMMAL SPECIES 12.6% OF BIRD SPECIES,
11.7% OF FISH AND ROUGHLY 6.0% OF TOTAL
FLOWERING PLANTS PRESENT IN THE WORLD
WITH EXCELLENT AGRO-CLIMATIC
CONDITIONS. THIS IS A GREAT RESOURCE FOR
RESEARCH AND DEVLOPMENTAL ACTIVITIES
IN BIOTECHNOLOGY.
 FOCUS– GENOMICS, RECOMBINANT DNA,
TRANSGENICS. STEM CELL RESEARCH AND
NEW DRUGS DEVELOPMENT.

 VACCINE
 DIAGNOSTICS
 ANIMAL HEALTH
 ENZYMES
MARKET AROUND US $ 100 Mn.
VALUED
GROWTH
RATE
20%
MARKET DEMAND US $ 50 Mn.
DEMAND GROWING RAPIDLY
BIOTECHNOLOGY MARKET
RAPIDLY GROWING
70% REQUIREMENT IMPORTED
MARKET GROWING WITH
INCREASING AWARENESS

 PHARMA
INDUSTRY
 FERMENTATION
INDUSTRY
TODAY 40-45% OF ALL DRUG ORIGINATE
IN BIO-TECHNOLOGY BUT IN THE NEXT
DECADES BIOTECHNOLOGY WILL HAVE
A MUCH GREATER ROLE ON THE PROD-
UCTION OF DRUGS AND PHARMACUET-
CALS.
MODEST FERMENTATAION INDUSTRY
MAINLY BREWERIE,
ANTIBIOTICS AND CHEMICALS
BUT GREAT POTENTIAL IN THE
AREAS OF –FOOD PROCESING,
PHARMA AND CHEMICALS.

 FOOD INDIA IS THE LARGEST PRODUCER
PROCESSING OF MILK AND SECOND LARGEST
INDUSTRY PROCUCER OF FRUITS, VEGETABLES
AND FOODGRAINS. BUT PROCESSING
IS LIMITED TO ONLY 2% OF FRUITS AND
VEGETABLES AND 15% MILK. THUS,
TREMENDOUS SCOPE FOR THE
DEVELOPMENT OF PROCESSING OF MILK
FRUITS &VEGETABLES, MEAT, FISH AND
FOODGRAINS

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






NO INDUSTRIAL LICENCE REQUIRED FOR FOODS
EXCEPT ALCHOHLIC PRODUCTS.
NATIONAL POLICY TO INCREASE FOOD PROCESSING
FROM PRESENT 2% TO 10% BY 2010.
INVESTMENT OPPORTUNITIES:
UPTO 51% FOREIGN EQUITY—AUTOMATIC APPROVAL.
UPTO 100% EQUITY ALLOWED ON APPROVAL UNDER
FOREIGN DIRECT INVESTMENT (FDI) SCHEME EXCEPT
MALTED FOOD, ALCHOHOLIC BEVERAGES.
CUSTOM DUTIES SUBSTANTIALLY REDUCED ON PLANT
AND EQUIPMENT, RAW MATERIALS AND
INTERMEDIARIES.

 INDIA IS SELF-SUFFICIENT IN MEETING LOCAL
DEMANDS.
 CHEMICAL INDUSTRY IS HIGHLY HETEROGENIOUS
COVERING SECTORS LIKE ORGAINIC, INORGANIC

CHEMICALS, DYESTUFF, PAINTS , PESTICIDES, ETC.
THE PESTICIDE INDUSTRY HAS DEVELOPED
SUBSTANTIALLY CONTRIBUTING TOWARDS
AGRICULTURE AND HEALTH.

RAPID STRIDES IN TERMS OF PRODUCTION AND
CONSUMPTION
(FIGS IN KT)
CATEGORY
SYNTHETIC
FIBRE
1997-98
(Actual)
1998-99
(Actual)
1999-2000
(Actual)
Prod. Cons. Prod Cons Prod.
________________________________________________
1246 1257 1379 1420 1525
POLYMER
SYNTHETIC
RUBBER
2016 2398 2189 2719 2805
62 105 54 106 55
SYNTHETIC
DETERGENTS
251 245 282 272 320

STEADY GROWTH IN EXPORTS OF CHEMICALS
DURING THE LAST THREE YEARS .
1996-97 1997-98
(US $ IN MILLIONS)
________________________________________________________
DYES AND DYE INTERMEDIATES
BASIC ORGANICS & INORGANICS
CHEMICALS INCLUDING
AGROCHEMICALS
388.8
416.2
445.6
439.0