The Hindu Business Line : `Product patent regime to drive R&D outsourcing to India'

(From left) Mr Rakesh Mohan, Secretary, Department of Economic Affairs; Dr T.N. Srinivasan, Professor of Economics, Yale University; and Mr Richard C. Levin, President, Yale University, at a meet `Beyond 2020: India in the Global Economy', in the Capital on Monday. - Kamal Narang

New Delhi , Jan. 3

THE adoption of the product patent regime from January 1 this year would see huge movement of outsourcing of research and development (R&D) work into India, according to Dr Rakesh Mohan, Secretary, Department of Economic Affairs (DEA) in the Union Finance Ministry.

Speaking at a panel discussion on `Beyond 2020: India in the Global Economy', organised by the Yale Club Of India, Dr Mohan also highlighted that large domestic players in the pharmaceutical industry were initially apprehensive about the product patent regime, but later saw merit in the adoption of the new regime.

"I hope a similar change (in thinking) takes place in the agricultural sector," he said in response to remarks made by Yale University Prof. T.N. Srinivasan over India's "inward mindset" in agriculture and reluctance to integrate this sector with the rest of the world.

Dr T.N. Srinivasan, who is the Samuel C. Park, Jr. Professor of Economics at Yale University, said: "India is still living in the 50s and 60s mindset and is always keen on seeking special and differential treatment in everything at the World Trade Organisation (WTO)." He said that there are still many areas where "policy has not gone far enough".

He also expressed doubt over India gaining a sizeable market share in the global textile trade on account of the dismantling of quotas from January 1. Dr Srinivasan highlighted that India did not gain any market share in any of the textile items on which quotas were lifted in the last 10 years.

Dr Mohan held that Indian economy would achieve quantum jump in growth rates in the coming years as steps are taken to remove the existing constraints, including those that are infrastructural and policy-induced.

"With all the constraints, we have grown at about 6 per cent in the last decade. Imagine what will happen if we remove the constraints. In the next five years, there is going to be demand-led growth. Policy will be struggling to keep pace with the changes," he said.

Dr Mohan also said that the current problem of public sector dis-savings would get sorted out as the country goes about conforming to the targets prescribed under the fiscal responsibility and budget management legislation.

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