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Centre to set up textile and agro funds

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BS Reporter Kolkata
Last Updated : Jul 27 2012 | 12:16 AM IST

After mulling a venture capital fund of Rs 2,000 crore to promote research and development (R&D) in the pharmaceutical sector, the Centre government is planning to set up similar funds in textile and agro sectors too.

“Pharma sector is one of the sunrise industries in manufacturing sector. There is huge market potential. We expect the pharma market size to grow by $ 1 trillion by 2020. Like we did in the sector, we are looking for similar funds in textile and agricultural sector,” said Commerce Secretary S R Rao. The government was in talks with the Export Import Bank of India (Exim Bank) for the Rs 2,000-crore fund in research activities for the pharma sector.The Bank chairman and managing director TCA Ranganathan tooo had said that it will be the implementing agency for allocation of funds in the pharma sector. He also said that Exim Bank wants government contribution in this fund to keep the cost of lending rates low. He added that the special economic zone rules harmonisation will be in place with in three to four weeks. Meanwhile, when asked about the international pressure on India to reduce imports from Iran and Syria, Rao said, “We have perfect understanding of what is our strategic interest. We need energy security. How can we have a sovereign country without energy security. We are within our sovereign right to ensure this security. If internationally it is said, don’t go to a particular source, we need time to recalibrate our approach and relation and find out a new partner. I don’t think anybody can dictate what has to be sovereign policy space.”

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First Published: Jul 27 2012 | 12:16 AM IST

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