Wednesday 16 April 2014
News updated at 4:05 PM IST
Weather
Max: 34°C
Min : 22.7°C
In Bangalore
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
US actress Emma Stone poses for the media during the Germany premiere of the movie 'The Amazing ...

US actress Emma Stone poses for the media during the Germany premiere of the movie 'The Amazing ...

2013 Boston Marathon bombing survivor Erika Brannock, a pre-school teacher from the Baltimore ...

2013 Boston Marathon bombing survivor Erika Brannock, a pre-school teacher from the Baltimore ...

Family members and survivors of the 2013 Boston Marathon bombing walk down Boylston Street for a rem

Family members and survivors of the 2013 Boston Marathon bombing walk down Boylston Street for a rem

An injured passenger who was on a sinking ship, is rescued by South Korean maritime policemen ...

An injured passenger who was on a sinking ship, is rescued by South Korean maritime policemen ...

A passenger is rescued by South Korean maritime policemen from a sinking ship in the sea off ...

A passenger is rescued by South Korean maritime policemen from a sinking ship in the sea off ...

South Korea rescue helicopters fly over to rescue passengers from passenger ship Sewol ...

South Korea rescue helicopters fly over to rescue passengers from passenger ship Sewol ...

South Korean rescue helicopters fly over a South Korean passenger ship, trying to rescue ...

South Korean rescue helicopters fly over a South Korean passenger ship, trying to rescue ...

Britain's Kate, the Duchess of Cambridge meets with a girl during a walkabout in the Civic Square...

Britain's Kate, the Duchess of Cambridge meets with a girl during a walkabout in the Civic Square...

Britain's Prince William carries Prince George with his wife Kate, the Duchess of Cambridge ...

Britain's Prince William carries Prince George with his wife Kate, the Duchess of Cambridge ...

This multiple-exposure composite photo of the moon was made beginning at 1 a.m., CDT, Tuesday ...

This multiple-exposure composite photo of the moon was made beginning at 1 a.m., CDT, Tuesday ...

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