Israel, India to Sign R&D Accord

Closely following recent agreements with Turkey and Japan, Israel has signed an industrial R&D agreement with India. Senior government representatives of the world's two largest generic drug manufacturers are scheduled to meet to sign the accord next month.

Israeli reports claim that the deal will envisage setting up a joint R&D fund, into which each partner will contribute US$1mn annually. The two sides will also aim to enhance cooperation in industrial standards, investment and trade quotas. Officials have previously discounted the possibility of a bilateral free trade agreement, although substantial agreements already exist for the IT and telecoms sectors.

What effect the deal will have on the pharmaceuticals industry remains to be seen, although India is rapidly expanding drug R&D at present, and Israel is already way ahead in creating a substantial biotech sector. Optimistic Indian forecasts expect the country's biotech industry to be worth some US$5bn by 2010. Overall bilateral trade has soared from roughly US$200mn to US$2.2bn in the last 10 years.