India receives highest FDI worth $1b in pharma in Apr-Jun
Sep 01 2013 , New Delhi
Foreign Direct Investment (FDI) in drugs and pharmaceuticals during April-June 2012 stood at $ 465 million, according to the latest data of Department of Industrial Policy and Promotion (DIPP).
The DIPP is working on a cabinet note to include major changes in the FDI policy in the sector to protect domestic generic (off-patent) firms.
"The DIPP is concerned that an overwhelming majority of foreign direct investment in pharma is coming only in existing (brownfield) units," an official said.
During April 2000 and June 2013, India has attracted FDI worth $ 11.31 billion, which is 6 per cent of the total foreign inflows.
The Finance Ministry has recently cleared a Rs 5,168 crore proposal of US-based pharmaceutical firm Mylan Inc's to acquire Indian generic drugs company Agila Specialties.
Other big acquisitions include Shantha Biotechnics by French pharma company Sanofi-Aventis. In 2008, Japanese firm Daiichi Sankyo had bought out the country's largest drug maker Ranbaxy for $ 4.6 billion.
The other nine sectors which received FDI during April- June quarter of the fiscal include services ($ 945 million), automobile industry ($ 515 million), computer software and hardware ($ 171 million) and construction development ($ 167 million).
During the first quarter of the fiscal, the country attracted highest FDI from Singapore ($ 1.85 billion), followed by Mauritius ($ 1.09 billion), Germany ($ 510 million) and the Netherlands ($ 408 million).