Amendments in FDI Policy for India’s Pharma Sectors

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.