Pharma Trends

Fdi in Pharma Sector in India registers over 100% growth during April-December 2013

March 25, 2014: Foreign direct investment (FDI) into the Indian pharmaceutical sector has more than doubled during the April-December 2013 period in this fiscal at US$ 1.26 billion. FDI in the drugs and pharmaceutical sector stood at US$ 589 million in the corresponding period last fiscal, according to the data from the Department of Industrial Policy and Promotion (DIPP).

 

There have been several rounds of debates and discussion on the India’s stance on the foreign investments in the pharmaceuticals sector. According to the estimates, over 96 per cent of the total FDI in the sector between April 2012 and April 2013 has come into brownfield projects.

 

It may be noted here that the government recently cleared a proposal worth Rs 5,168 crore from US based pharma firm Mylan Inc to acquire the domestic generic drugs manufacturer Agila Specialities.

 

On the policy front, India allows 100 per cent FDI in pharma sector through automatic approval in new projects, but the proposed FDI in existing projects is allowed post securing approval from the Foreign Investment Promotion Board (FIPB).

 

Apart from pharmaceuticals, other sectors like services (US$ 1.59 billion), construction (US$ 914 million), automobile (US$871 million) and chemicals (US$ 490 million) also received high FDI during the nine-month period. The total FDI attracted by India during this nine month period stood at US$ 16.56 billion.

 

The Government of India has already liberalised foreign investment norms in various sector in order to attract more foreign players to the Indian market.

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