India on 10 October 2011 decided to continue with 100 percent Foreign Direct Investment (FDI) for new ventures in the pharmaceutical sector. The decision was taken at a high-level meeting chaired by Prime Minister Manmohan Singh to discuss the FDI policy in drugs and pharmaceutical sector held in New Delhi. The move will facilitate addition of manufacturing capacities, technology acquisition and development of the pharmaceutical sector in the country.
However, in case of existing ventures in the pharmaceutical sector, FDI will be allowed for a period of six months after approval from the Foreign Investment Promotion Board (FIPB). It was also decided that the Competition Commission of India (CCI) will be strengthened for effective oversight on mergers and acquisitions to ensure that there is a balance between public health concerns and attracting FDI in the pharmaceutical sector.
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