Union minister for
Chemicals and Fertilizers Shri.S.S.Dhindsa has emphasized the
need to evolve appropriate strategy to consolidate the gains &
put the Chemical Industry once again on the high growth path.
He was addressing the delegates at the Government-Pharmaceutical,
chemical and petrochemical Industry Interactive session here today.
"In India Chemical Industry is well developed, diversified with
potential for growth but the Industry needs to respond to strive
for attaining world class capabilities and capacities", the minister
said. He also said that high-quality skilled manpower with excellent
R&D facilities available in the country should be harnessed
to ensure appropriate knowledge management & take advantage
of the technology. " Restructuring of businesses by consolidation,
mergers & acquisitions, production of high value added products
and modernization would be essential for value creation and enhancing
competitiveness", he added.
Expressing concern
over meagre allocation of resources for R&D in our country
Shri Dhindsa said that if we have to catch up with the global
technological advancements, R&D expenditure would have to
be raised to a minimum of 2% of the turnover. Referring to post
2005 scenario, the minister said that the Pharmaceutical Industry
has to intensify its efforts towards new drugs, novel products
and delivery systems to maintain an edge in the market. "Creation
of congenial environment would be vital for making India a global
R&D hub", he added.
Shri Dhindsa also
said that compared to the neighboring Southeast Asian countries,
domestic chemical industry has been constrained by lack of adequate
infrastructure. "Considering the bottlenecks Government is committed
for providing comprehensive, preferably port-based infrastructure
to the Chemical Industry in the form of Mega Chemical Industrial
Estates", he said.
Referring to resource
scarcity the minister said that Government have permitted 100%
Foreign Direct Investment in all the three segments but India’s
total FDI of US $ 4 billion during 2000-01 is a far cry from China’s
US $ 46.8 billion. He called upon the Industry to work in conjunction
with government to encourage investment in the Chemical Industry
both from within the country and abroad. He also urged the participants
to make strenuous efforts to achieve the higher growth level of
8% GDP set by the Prime Minister during the 10th Five
Year Plan and to evolve appropriate strategy to attain at least
1per cent share in global trade by identifying Focus Markets like
Africa & Latin American Countries.
Speaking on the occasion
Minister of State for Chemicals and Fertilizers Shri.Tapan Sikdar
said that the industry has to continuously improve the quality
of products and keep an eye on the cost of production so as to
ensure presence in the global market. Among those present on the
occasion were Secretary, Department of Chemicals Shri.Vinay Kohli
and representatives of state governments and other central ministries.
