The Organisation of Pharmaceutical Producers of India (OPPI) today welcomed the Centre's 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) government's 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 said.
"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 multi-national companies which believe in the growth potential of the domestic industry.
"We remain positive on the sector, maintaining our recommendations," Angel Broking VP Research- Pharma Sarabjit Kour Nangra said.