India on Tuesday cautioned that a deadlock on trade-related intellectual property rights and public health could block progress on other issues at the World Trade Organisation's ministerial meeting in Cancun next month.

It further asked developed countries like the United States to stick to the decision at Doha and not dilute the provisions of the proposal aimed at waiving patent rights for countries without drug manufacturing capabilities in case of epidemics.

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"For any movement forward at Cancun, resolution of the TRIPs and public health issue is crucial," Commerce and Industry Minister Arun Jaitley said while inaugurating the first interactive session on amendments to the Patents Act. He said it was important to break the deadlock on the issue to take the developing world along.

Referring to the US' opposition to the issue, he said Washington thought of resorting to compulsory licensing when it was hit by the anthrax scare in 2001.

"The next few weeks are crucial and we expect the US to appreciate the concerns and the agreement reached by other countries," he said.

Calling labour as India's largest resource, Jaitley said like manufacturing products, markets that offered good quality services at lower prices would be preferred.

The minister said with population shrinking in developed countries and the large knowledge pool available in India, companies would set up shop in the country in the coming years. He said patent protection was important not only on moral and ethical grounds but also to provide incentives for research.

Jaitley made it clear that India's international commitments under the TRIPs agreement would be balanced and in accordance with national interests.

Delivering the keynote address at the seminar, director-general of the Council for Scientific and Industrial Research R A Mashelkar said patent protection was essential to encourage research. He said procedures in this regard had to be improved and made more user-friendly.