◆Government keeps 100% FDI policy in pharma unchanged
【New Delhi】Despite the department of industrial policy and promotion (DIPP) pitching for curbs on FDI in existing pharmaceutical units, the government on Wednesday kept the existing policy, allowing up to 100 per cent foreign equity in the sector.
Notifying the decision, taken by the Cabinet Committee on Economic Affairs (CCEA) in November, the department of industrial policy and promotion (DIPP) under the ministry of commerce and industry stated 100 per cent foreign direct investment (FDI) would be allowed in both greenfield (new) and brownfield (existing) segments. The Press Note said the decision comes into force with immediate effect. As earlier, FDI in brownfield will be subject to approval by the Foreign Investment Promotion Board (FIPB).
However, as a rider, DIPP said a 'non-compete clause' "would not be allowed except in special circumstances with the approval of FIPB". While both the health and commerce & industry ministries had proposed more restrictions for new entrants into the sector, the finance ministry felt putting various riders on new investment would hurt the flow of foreign exchange.
【News source】