India Chem 2000 : Valedictory Session of Conference
October 6-8, 2000

Speech of Minister of State (Chemicals and Fertilizers)

It gives me great pleasure to address the Valedictory Session of the Conference on India Chem 2000. Eminent speakers have covered and will cover the various aspects of the Indian Chemical Industry. For my part, I would just like to say a few words as a person responsible to the country as Minister of State for Chemicals & Fertilizers. You are all aware that chemical industry is one of the oldest industries in the country. It has an important position in the country's economy. It has been growing at the rate of 12% p.a, which is almost twice the rate of growth of GDP. The role of the industry in meeting the daily needs of the common man is also significant and crucial.

India Chem 2000 was organized to provide a booster to the Indian chemical industry in order to increase its exports and also to emerge as a major player in the world markets. You all know that the USA is the Partner Country for the event. Gujarat is the Partner State in India and the State of New Jersey is the Partner State from the United States of America.

The remarks made by the Assistant Secretary Mr. Copps have been extremely encouraging for the Indian chemical industry and I am sure the chemical industry of both the countries will witness a new phase of interaction and co-operation in the perspective of the vision of greater economic co-operation and friendship between our two great nations.

The Indian chemical industry can be classified into Polymerization products, basic chemicals, fine chemicals and pharmaceuticals. The Indian pharmaceutical industry is one of the most dynamic in the developing world and India today is one of the largest producers of pharmaceutical goods. The drugs produced by the country cover a wide range of therapeutic groups. Chemical,
fertilizer and pesticides are also an important limb of this industry. India produces a large number of organic and in-organic chemicals. In the field of dyes and fine chemicals, the Indian industry combines traditional knowledge and skills to produce high quality products.

The chemical industry in India is on the threshold of a revolution that will make it a power to reckon with in the post WTO era. The industry is fully seized of the highly competitive global markets and is gearing itself to face the new challenges. With globalization and lowering of tariffs, the industry is facing increased presence from exports and is in the process of transforming into an
export oriented sector.

Indian chemical industry is very strong in the domestic market, especially in the agrochemicals, pharmaceuticals, dyes and specialty chemicals sector. India is not only self reliant in these sectors but is also exporting substantial quantities to various countries. With the right effort, these strengths could enable the industry to increase its exports tremendously.

India's capabilities in the IT and telecommunications sectors can be used to a great advantage in the development of the chemical industry, especially in the pharmaceuticals, biochemical and genomics. In pharmaceuticals, IT can play a crucial role in molecular synthesis which is an essential part of the new drug development.

Two factors need to be emphasized namely the need to set up Research & Development Centres and increase in the exports sector. India's strength in the knowledge based industry and its strong base of skilled scientific manpower provide an excellent opportunity for companies that are looking for boosting their R&D efforts and establishing new production bases for launching new products.

The department is increasingly taking on the role of facilitator, trying to assist the industry whenever such need arises. Already export promotion cells have been set up to facilitate and boost exports from this sector. Steps are being taken to constitute special teams comprising of members of industry associations and officers of the Department of Chemicals & Petrochemicals to familiarize the industry with the various aspects of the WTO, the impact of its provisions on the chemical industry and strategies the industry should adopt to cope with the post WTO scenario.

I am sure the interaction between the industry and the government would facilitate further growth of this sector. I wish the participants the very best in their efforts.

Thank you,