The government on Wednesday, decided to retain the policy of allowing 100 per cent FDI in the existing pharma firms. In a statement, the Department of Industrial Policy and Promotion, however, said that as far as the contentious issue of non- compete clause is concerned, the Foreign Investment Promotion Board will take a view on it on case-by-case basis. The decision came after reviewing the position in this regard.Faced with a rush of multinationals acquiring Indian pharma firms, the department had earlier proposed stringent norms to tighten the FDI policy for the sector.It had said the continuous acquisition of Indian pharma companies will severely impact availability and affordability of generic medicines in the country, and asked for a reduction in the FDI cap to 49 per cent from 100 per cent in rare or critical pharma verticals.
News On AIR | January 9, 2014 9:27 AM
Govt to retain policy of allowing 100% FDI in existing pharma firms