Speech by Her Excellency the President of India, Shrimati Pratibha Devisingh Patil at the Inauguration of the India Chem 2010 - International Exhibition and Conference at Mumbai

Ladies and Gentlemen,

It is my pleasure to inaugurate the India Chem 2010 - International Exhibition and Conference on Chemicals, Petrochemicals, Pharmaceuticals and Process Plant Machinery. It is jointly organized by the Government of India and the Federation of Indian Chambers of Commerce and Industry, one of the biggest business organizations of the country and I congratulate them for organizing it. I am informed that in a short period, India Chem Expo has generated global interest, providing an opportunity for all in this sector to come together on one platform, and share thoughts and vision about its future growth. I am sure that this Conference will result in fruitful deliberations on all issues concerning the chemical industry, from both the domestic as well as global perspectives.

The chemical industry which includes petrochemical and pharmaceuticals, is one of the most diversified of all industrial sectors covering thousands of commercial products. Its products permeate the entire spectrum of daily use items and cover almost every sphere of life. The global chemical industry is worth US $ 3.6 trillion with the Indian chemical industry being the 6th largest in the world. This sector is a significant contributor to our national economic growth. It accounts for nearly one-eighth of our industrial production and one-sixth of the country's exports of manufactured goods. It has been registering a steady growth of about 7-8 percent over the past few years.

However, the per-capita consumption of chemical products in our country is only a fraction of the global average. In dyes, for example, our per capita consumption is 50 grams as against a world average of 425 grams. In case of polymers, the per capita consumption is 5.2 kilograms in India, as against the world average of 25 kilograms. Keeping in view the size of our domestic market, the potential for growth of these sectors in India is immense. Hence, the theme of the India Chem 2010 Conference "Sustaining the India Advantage", underscores the point that the chemical industry in India is well developed and is poised for further growth.

A comprehensive infrastructure is the basis for the growth of any industry. Infrastructure should be such that it not only spurs growth, but also helps in introducing economies of scale and synergy, making the units cost effective. In this context, the policy of the Union Government to set up Petroleum, Chemical and Petrochemical Investment Regions (PCPIR), will encourage sector specific investments in both upstream and downstream segments at selected locations. Such initiatives can facilitate the sustained growth of the Indian chemical industry.

With strong technical skills and low cost manufacturing, India is becoming an attractive outsourcing choice for knowledge based value added chemicals. We must use this opportunity. We are already seeing strong early signs of Indian players taking roots in segments such as specialty chemicals, agrochemicals, pharmaceuticals and custom research and manufacturing. We have to continue our efforts to identify many more such opportunities for Indian footprints in newer and technology driven areas. In order to reach these goals, industry must invest more in R and D. As compared to a world average of 5 percent, investment by the Indian chemical industry in R and D is only around 1 percent of the turnover. Our efforts should be to substantially increase R and D and set a goal to reach the global norms by the year 2020. Research and training institutions in the country such as the National Chemical Laboratory, the National Institute of Pharmaceutical Education and Research, the Central Institutes on Plastics Engineering and Technology, the - Central Drugs Research Institute, will play an important role in this endeavour. We must continuously make efforts to nurture talent and make sure that skill development matches the growth requirement of the industry. Indian research laboratories should also undertake collaborative research with other such institutions in other countries.

I want to emphasize that the growth of the industry must come with greater realization and increased attention to safety, health and environmental standards. There is need to create awareness about the safe use of chemicals, so as to prevent harmful fallouts on the environment and human beings. Laws regarding these aspects across the world, including India are becoming more and more stringent every day. India is a signatory to international conventions such as the Chemical Weapon Convention, the Rotterdam Convention, the Stockholm Convention, the Montreal Protocol and the Kyoto Protocol. The main objective of these conventions is to protect human health and the environment from the hazards of chemicals. The chemical industry should come forward and take steps to implement these conventions scrupulously. This will go a long way in saving our planet. The chemical industry in the coming decades has to promote sustainable development by investing in technology, that protects the environment and stimulates growth. Industrial wastes have also to be managed better. New technologies are available for tackling the problem of industrial waste. The industry has, therefore, much more to do in this area with greater responsibility.

Corporate Social Responsibility and corporate governance are other aspects very essential for responsible functioning. Business does not operate in a vacuum or in an isolated fashion. It draws upon natural resources and utilizes the human capital of a nation. On its part, it should seek to maximize benefits to society. I call on industry to work with this approach and see how they can contribute to the welfare of society.

I am confident that the Indian chemical industry will take full advantage of the presence at India Chem 2010 of participants from India and abroad, to acquaint themselves with latest developments taking place all over the globe, and to prepare for the new scenario that is emerging. I am equally confident that interaction at the Conference would convince foreign delegates about the various opportunities India offers for trade and investment.

With these words, I have great pleasure in inaugurating the India Chem 2010. I would like to once again congratulate Dr. M.K. Alagiri, Minister for Chemicals and Fertilizers and his Ministry as well as FICCI for organizing this international Conference and Exhibition, and I welcome you all for this Conference and Exhibition.

Thank You. 
Jai Hind!