Amendments in FDI Policy for India’s Pharma Sectors

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Nov. 10 – The government of India has already allowed 100 percent FDI into the pharmaceuticals industry. Recently, the government has reviewed its policy in the particular sector. Below are the specific points:

  • FDI, up to 100 percent, under the automatic route, would continue to be permitted for greenfield investments in the pharmaceuticals sector.
  • FDI, up to 100 percent, would be permitted for brown field investments (i.e. investments in existing companies), in the pharmaceuticals sector, under the government approval route.

As a result, the following amendment is made in “Circular 2 of 2011- Consolidated FDJ Policy,” dated September 30, 2011, issued by the Department of Industrial Policy and Promotion:

Insertion of a new paragraph 6.2.25

A new paragraph (6.2.25) is inserted as below:

Please note that below amendments will be effective immediately. The decision will be reviewed after six months by the government.

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