Press Esc to close
Sunday 23 November 2014
News updated at 3:00 PM IST
Weather
Max: 0°C
Min : 0°C
In Bengaluru
Sunny day

Govt to finalise FDI policy in pharma before FIPB meet

New Delhi, June 30, 2013, PTI:
File image

The government is likely to finalise FDI policy with regard to existing drug companies ahead of the FIPB meeting on July 5, which is scheduled to take up as many as 10 foreign investment proposals.

The Department of Industrial Policy and Promotion (DIPP) has raised concerns over spate of acquisitions of domestic pharma firms by multinationals. The DIPP has sought the intervention of the Prime Minister’s Office on this matter.

Government sources said that on an average about 25 per cent of the FIPB agenda is related with pharma sector.


The continuing acquisitions of Indian pharma firms by foreign companies would pose serious problems in availability of life-saving drugs to consumers in near future, they added. Earlier, the Department had asked the Foreign Investment Promotion Board (FIPB) not to take decision on any related proposal.

FDI policy in the sector has already been discussed at the PM level in December last year. Accordingly, all foreign investments in existing domestic pharma firms was allowed only after clearance by the FIPB.

With no let up in multinationals seeking nod to acquire stake in Indian pharma firms despite government putting norms to check it, the DIPP has raised concerns stating the FDI policy in the sector needs a relook again at the PMO level.

Currently, India permits 100 per cent FDI in pharma sector through automatic approval route in the new projects but the foreign investment in the existing pharma companies were allowed only through FIPB’s approval.

In 2008, Japanese firm Daiichi Sankyo had bought out the country’s largest drug maker Ranbaxy for $4.6 billion. US-based Abbot Laboratories had acquired Piramal Health Care’s domestic business for $3.7 billion.

Go to Top

Photo Gallery
Elderly women take part in Tug-of War during annual month long sports competition...

Elderly women take part in Tug-of War during annual month long sports competition...

A tigress in a playfull mood at the Maharajbag Zoo in Nagpur, Maharashtra...

A tigress in a playfull mood at the Maharajbag Zoo in Nagpur, Maharashtra...

Indian Air Force (IAF) Sukhoi Su-30 fighter aircrafts make a formation in the shape...

Indian Air Force (IAF) Sukhoi Su-30 fighter aircrafts make a formation in the shape...

Players during the 3rd day of IBSF World Snooker Championship in Bengaluru...

Players during the 3rd day of IBSF World Snooker Championship in Bengaluru...

Interim President, BCCI Shivlal Yadav felicitates Indian cricketer Rohit Sharma at the BCCI...

Interim President, BCCI Shivlal Yadav felicitates Indian cricketer Rohit Sharma at the BCCI...

Migratory birds arrive to make nest at tree at Islampur in Birbhum district of West Bengal...

Migratory birds arrive to make nest at tree at Islampur in Birbhum district of West Bengal...

Decommissioned warship, INS Vikrant being wrecked at Darukhana ship breaking yard in Mumbai...

Decommissioned warship, INS Vikrant being wrecked at Darukhana ship breaking yard in Mumbai...

Indian Air Force (IAF) helicopters make a formation during a parade for presentation...

Indian Air Force (IAF) helicopters make a formation during a parade for presentation...

Indian Coast Guard launching Interceptor Boat c-416 at Hazira, Surat...

Indian Coast Guard launching Interceptor Boat c-416 at Hazira, Surat...

Arun Jaitley with Mega actors Amitabh Bachchan and Rajinikanth...

Arun Jaitley with Mega actors Amitabh Bachchan and Rajinikanth...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523