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Pharma sector receives Rs 4,975-cr FDI in FY16: Govt

The drugs and pharmaceuticals sector has received Foreign Direct Investment (FDI) of Rs 4,975 crore in 2015-16, parliament was informed.

 “In the year 2014-15, FDI equity inflow of Rs 9,052 crore and in the year 2015-16, inflow of Rs 4,975 crore have been received in the drugs and pharmaceutical sector,” Minister of State for Chemicals and Fertilizers Mansukh L Mandaviya said in a reply to Lok Sabha.

FDI policy provides for 100 per cent FDI under automatic route in greenfield pharma and upto 100 per cent under government route in brownfield pharma, he added. “Up to 74 per cent FDI under automatic route in brownfield pharmaceuticals and government approval route beyond 74 per cent has been permitted,” Mandaviya said.

The government on June 20 had relaxed FDI norms in various sectors including civil aviation, single-brand retail, defence and pharma by permitting more investments under automatic route. The decision was taken at a meeting chaired by Prime Minister Narendra Modi.

Source: Money Control

Image Courtesy: www.firstpost.com