Policy Matter

FDI Policy in Pharmaceutical Sector

fdi

As per extant FDI policy, FDI, upto 100%, is permitted, under the fdiautomatic route for greenfield, and under the government approval route for brownfield pharmaceuticals sector. Further, FDI, upto 100%, under the automatic route, is permitted for manufacturing of medical devices/ equipments both for greenfield and brownfield investments.

There is, at present, no proposal under consideration of the Government to review the extant FDI policy in the medical devices/ equipments.

In order to protect the domestic pharmaceuticals sector, FDI policy provides that ‘Non-compete’ clause would not be allowed except in special circumstances with the approval of the Foreign Investment Promotion Board. In addition, Government may incorporate appropriate conditions for FDI in brownfield cases, at the time of granting approval. Further, with a view to incentivize investment in the manufacturing of medical devices, the sector has been placed under the automatic route.

As per extant FDI policy, FDI, upto 100%, is permitted, under the automatic route for greenfield, and under the government approval route for brownfield pharmaceuticals sector.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha on 13th March’15.

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