President A.P.J. Abdul Kalam Wednesday praised the Indian pharmaceutical industry for its rising competence levels and said it was poised to come out with new drugs to fight cancer and diabetes.

Addressing the 92nd session of the Indian Science Congress here, Kalam said: "Since this congress focuses on health technology as a fulcrum of development, I am starting with thoughts on pharmaceuticals and healthcare.

"In 2004, I have visited five research and development (R&D) laboratories of pharmaceutical industries and three health centres.

"I was very happy to see the economic strength of the pharmaceutical industry, resulting from the technological innovation of their R&D laboratories.

"In 2000, there was a fear among members of the health sector and scientists that they will not be able to compete in the international market due to the World Trade Organisation environment. When I now visited these pharmaceutical units, I found the situation has totally changed," he said.

"The confidence of the pharmaceutical community is coming in a big way due to the establishment of state-of-the-art R&D labs. During my visit I discussed with scientists and technologists, and I am completely convinced that the Indian pharmaceutical sector is becoming very robust with a sound R&D base.

"There was a great movement in transforming molecules to drug, I feel, in 2005. At least three drugs will materialise leading to the treatment of certain types of cancer and for diabetes and inflammatory diseases."