Pharma Trends

Foreign investment in Indian pharma on the rise!

February 3, 2014: The inherent strengths of the Indian pharmaceutical sector has kept the foreign investors interested in the domestic market. According to the data from the Department of Industrial Policy and Promotion (DIPP), foreign direct investment (FDI) in the Indian pharmaceutical sector grew by more than double to US$ 1.25 billion during the April-November 2013 period, compared to US$ 581 million during the corresponding period in 2012.  


The proposal worth Rs 5,168 crore (US$ 829 million) from US-based Mylan Inc to acquire Indian generic drug firm Agila Specialities was one of the big acquisitions announced in the Indian pharmaceutical market over the past few months.  


Other major recent acquisitions include Shantha Biotechnics by the French Pharma company Sanofi-Aventis. It may be noted here that the Japan-based pharma firm Daiichi Sankyo bought out the country’s largest drug manufacturer Ranbaxy for US$ 4.6 billion. 


India allows 100 per cent investment in the pharma sector through automatic approval route in the new projects while investment in the existing projects is permitted post securing an approval from the Foreign Investment Promotion Board.  


Experts are of a view that foreign investors will continue to invest in the Indian market and would be looking for both organic and inorganic opportunities for growth. A strong domestic market and huge growth potential for exports positions India as one of the strategic markets for expanding presence to be future ready.


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