Pharma Trends

Pharma sector witnesses 86.5% growth in FDI in April-Oct 2013

January 5, 2014: Foreign Direct Investment (FDI) in the Indian pharma sector increased by 86.5% to US$ 1.08 billion during April-October 2013, according to the data of the Department of Industrial Policy and Promotion (DIPP). The FDI in drugs and pharmaceutical segment stood at US$ 580 million during the same period last year.

 

It may be noted here that the Government of India has retained permitting 100 per cent FDI in the Indian pharma sector. India allows 100 per cent FDI in pharma sector through automatic approval route in the new projects, but foreign investment in the existing companies are allowed only through the Foreign Investment Promotion Board (FIPB) approval.

 

The strong growth posted in the Indian pharma sector and continued interest from the foreign investors is a strong indicator towards the robustness of the Indian pharma industry. Also, the inherent strengths of the Indian pharma industry and the strong position in the Indian generics are driving forces for the growing foreign investment.

 

Going forward, it is expected that more investment will come into the Indian pharma industry and the Indian Prime Minister, Dr Manmohan Singh also recently said that India provides a hospitable environment for FDI and will continue to improve the situation.

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