Finance Ministry pitches for easing of FDI norms in pharma sector

NEW DELHI: Foreign direct investment in pharmaceutical sector is back in the spotlight, with the finance ministrypitching for a review of the policy that was tightened for brownfield investments, or investments in existing Indian companies, following fears of large-scale takeover by multinational companies.

“There is a need for revisiting the policy and having a thorough debate on merits of restrictions and their impact on the sector,” said a ministry official. The development comes in the backdrop of discussions between the department of industrial policy and promotion and the finance ministry on switching to a composite cap, which includes all forms for foreign investments, for all sectors.