Press Esc to close
Sunday 31 May 2015
News updated at 2:46 AM IST
Weather
Max: 32.4°C
Min : 22.3°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
Sand artist Sudarsan Pattnaik creates a sand sculpture with a message “Choice is Yours, Don’t be Lat

Sand artist Sudarsan Pattnaik creates a sand sculpture with a message “Choice is Yours, Don’t be Lat

NSUI students protesting near the National Media Centre where Union HRD Minister Smriti Irani...

NSUI students protesting near the National Media Centre where Union HRD Minister Smriti Irani...

Bollywood actor Ranveer Singh, center, dances with members of the media during a press conference...

Bollywood actor Ranveer Singh, center, dances with members of the media during a press conference...

A man looking at the water in a dam which turning red due to some chemical reaction...

A man looking at the water in a dam which turning red due to some chemical reaction...

An Indian eagle which was struck inside the fallen tree near Bengaluru Press Club...

An Indian eagle which was struck inside the fallen tree near Bengaluru Press Club...

India's Khalin Joshi tees off on the first hole during the final round of the Bashundhara...

India's Khalin Joshi tees off on the first hole during the final round of the Bashundhara...

Tobacco farmers and workers holding a protest in Vijaywada against anti-tobacco campaigns...

Tobacco farmers and workers holding a protest in Vijaywada against anti-tobacco campaigns...

An elderly woman smokes a Bidi on the eve of 'World No Tobacco Day' in Ahmedabad...

An elderly woman smokes a Bidi on the eve of 'World No Tobacco Day' in Ahmedabad...

Models walk the ramp at Indore Fashion Week in Indore...

Models walk the ramp at Indore Fashion Week in Indore...

Ramkumar Ramanathan of India play a backhand shot against Vishnuvardhan during ITF Mysuru Open...

Ramkumar Ramanathan of India play a backhand shot against Vishnuvardhan during ITF Mysuru Open...

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