"Any step in the direction of encouraging industry to invest greater resources in research will have to begin with allowing market forces to operate in the area of drug pricing," Singh said at a two-day World Intellectual Property Organisation (Wipo) seminar on Patent Co-operation Treaty (PCT) here on Thursday.

Singh said that once product patents are introduced in India, the share of patent protected drugs is likely to go up to 20 per cent to 25 per cent (from around 10 per cent now) over the next 10 years. "There is no doubt that these drugs will be priced at a premium to recoup the investments made in research. However, the abundant availability of off-patent drugs will ensure that a majority of the country's medical needs can be met at affordable prices," he said.

Besides, the TRIPS agreement allows adequate safeguards and flexibility to national governments for protection of their national interest, through provisions such as compulsory licensing which may be exercised in the case of exigencies, he added.

Meanwhile, Vision Consulting group chief executive officer Dilip G Shah said that the linkage of intellectual property with trade has turned it as an issue of trade contention as well as an instrument of trade facilitation.

He said that it is not enough that officials of the ministries dealing with the World Trade Organisation (WTO) are familiar with the new regime. All key officials in the government at the centre and in the states that have anything to do with the economy, trade, investment, health and agriculture must familiarise with the unfolding patent regime. Shah also said though India has successfully challenged the patent for haldi filed in the US, our ability to protect our rights is at stake.