Total foreign direct investment in the drugs and pharmaceutical sector in the country rose to Rs 2,065 crore during April to September period of fiscal year 2019-20, Parliament was informed on Friday. The foreign direct investment (FDI) equity inflow in the drugs and pharmaceutical sector stood at Rs 1,842 crore in FY 2018-19, Minister of State for Shipping and Chemicals & Fertilizers Mansukh Mandaviya said in reply to a question in the Rajya Sabha.
FDI in the sector was at Rs 6,502 crore in 2017-18, Rs 5,723 crore in 2016-17, Rs 4,975 crore in 2015-16 and Rs 9,052 crore in 2014-15, he added.
To attract larger FDI in the pharmaceutical sector, the government reviews FDI policy on an ongoing basis with a view to liberalise and simplify it progressively and improve the country’s investment climate by providing ease of doing business, Mandaviya said.
Also, various measures are taken under ‘Make in India’ initiatives facilitating investment, fostering innovation and thereby promoting robust business environment in the country, he added.
The drugs and pharmaceuticals sector is witnessing an era of unparalleled growth and innovation. Drugs and pharmaceuticals are India’s largest sectors- both in terms of revenue and employment,” Mandaviya said.
The government amended the FDI policy on pharmaceutical sector in June 2016 by allowing 100 per cent FDI for greenfield pharmaceutical projects and up to 74 per cent FDI for brownfield pharmaceutical projects through the automatic route and beyond that through government’s approval, he added.
FDI is largely a matter of private business decisions and inflows depend on a host of factors such as availability of natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors, Mandaviya added.-Money Control