India is one of the top biotech hubs in the world and despite a slowing global economy, the sector is expected to not just survive, but thrive.

The election of Barack Obama as incoming US president looks to be a shot in the arm for the Indian pharmaceutical industry. He has promised increased spending on public health and this could benefit India, one of the largest generic drug suppliers in the US.

India is also a favourite for investment in clinical research.

The Confederation of Indian Industries estimates that the biotechnology sector will attract investment worth US$5 billion by 2010.

Kiran Majumdar Shaw, chairman, MD, BIOCON, said: "The reason this is happening is because a large part of drug development is attributed to clinical development - recruiting patients, the speed and cost of these kind of trials all play a very important role in commercializing products.

“And again given the fact that India has a huge advantage in this particular space, I think we can create a large business portal out of this."

And unlike other sectors, a global meltdown is a boon for the biotech industry of India.

Indian biotech companies are working on acquiring units in US and Europe on the cheap, after their valuations fall.

There will also be more collaborations between foreign and domestic firms.

Mr Shaw continued: "I think you will see more and more collaborations, partnerships and joint ventures to bring down the cost and make this whole process more affordable."

But there is still scope for improvement.

India needs to revamp its educational infrastructure to build capacity in research.

Experts also said India needs a well-equipped national regulatory body to ensure that the industry meets global standards.

Despite being in a nascent stage, the growth rate of Indian biotech has been phenomenal. Since the last three years the industry has grown between 35 to 40 per cent. More innovations in medicine, engineering and even agriculture look set to come.