OPPI hails new FDI norms for pharmaceutical sector

The Organisation of Pharmaceutical Producers of India (OPPI) today welcomed the Centres decision to allow up to 74 per cent Foreign Direct Investment (FDI) in pharmaceutical sector under the automatic route.

With the objective of promoting the development of this sector, it has been decided to permit up to 74 per cent FDI under automatic route in brownfield pharmaceuticals and government approval route beyond 74 per cent will continue.

"We welcome (the) governments decision to make changes to the FDI policy. We believe that this will provide an impetus to employment and job creation in the country," OPPI Director General Kanchana TK told PTI.

"The decision...will augur well with our members who are constantly exploring ways of ensuring new drugs and medicines are made available to Indian patients," Kanchana added.

Under the existing policy in the sector, 100 per cent FDI is allowed under automatic route in greenfield pharma and up to 100 per cent under government approval in brownfield pharma.

The new norms will enable enhanced investments (in the form of M&A activity) from the MNC companies, which believe in the growth potential of the domestic industry.

Source: http://indiatoday.intoday.in/story/oppi-hails-new-fdi-norms-for-pharmaceutical-sector/1/696879.html