FDI in Pharmaceuticals: Government relaxes Norms


Indian Government have opened new regime for Foreign Direct investment called FDI, Norms eased in Retail, Aviation, Defense, Food and Pharma sector which has evolved to soothe investor in the said sectors

The PMO office on Twitter announced that “Key reforms were taken at a high level meeting chaired by PM, which makes India the most open economy in the world for FDI”



Earlier Scenario:

Pharma sector Foreign Direct Investment ceiling in existing companies was 100% but though Government approval beyond 49%


Current Scenario:

Pharma Sector Foreign Direct Investment will not require government approval till 74%


Impact on Pharma Sector:

The government decision may lead to huge rise in Foreign Direct Investment in Domestic Pharmaceutical Firms where the previous limit of 49% was considered as one of the biggest resistance


According to officials, Government have eased norms regarding 100% FDI in greenfield pharma via the automatic route, 100% in browfield pharma Рof which 74% will be through automatic route. The FDI permissions are given by Foreign Investment Promotion Board (FIPB) of Finance Ministry





Team Pharmacy Infoline


Team Pharmacy Infoline

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