The assurance of cutting greenhouse gas emissions by China a source of cheap raw material has sent jitters across the pharmaceutical industry which apprehends that it will lead to drug rates shooting up.

The government has decided to adopt a two-pronged approach to step up the pace of pharmaceutical research in the country. This will include tie-ups with reputed overseas universities for collaborative research and education programmes, as well as setting up innovation centres at the six new National Institutes of Pharmaceutical Education and Research (Nipers), which are proposed to be set up.

For the first time companies of the Central Germany chemical and biotechnology industry  presented their innovations and products to India at The CPhI India 2009 . This has been facilitated by Germany's Federal Ministry of Education and Research (BMBF) under the two year campaign "Research in Germany – Land of Ideas" A total of five companies from the German States Saxony-Anhalt and Saxony will explore research, development and market opportunities in India.

The government is planning to set up a Rs 2,000-crore corpus fund for the pharma industry, said Pharmaceuticals Secretary Ashok Kumar today.