Indian government proceeds with FDI policy, despite warnings

Overlooking concerns about the scarcity of generic drugs in the domestic market given the spate of multinationals acquiring Indian drug majors, the Indian government has decided to continue with the policy of allowing 100% foreign direct investment in existing pharmaceutical firms, comments The Pharma Letter’s Indian correspondent.

Foreign firms would require no permission to invest up to 100% in setting up greenfield pharmaceutical units in the country. However, in the case of buying existing units (brownfield projects), they would need the approval of the Foreign Investment Promotion Board.

Pharmaceutical is the seventh largest sector of foreign direct investment (FDI) inflows, and $7.9 billion has come into India since 2000.