Note No.3 (2011 Series), dated 8-11-2011
1. Present Position:
Foreign Direct Investment (FDI), up to 100%, under the automatic route, is permitted in the pharmaceuticals sector.
2. Revised Position:
The Government of India has reviewed the extant policy on FDI and decided as under:
(i) FDI, up to 100%, under the automatic route, would continue to be permitted for greenfield investments in the pharmaceuticals sector.
(ii) FDI, up to 100%, would be permitted for brownfield investments (i.e., investments in existing companies), in the pharmaceuticals sector, under the Government approval route.
3. Accordingly, the following amendment is made in 'Circular 2 of 2011- Consolidated FDI Policy', dated 30-9-2011, issued by the Department of Industrial Policy & Promotion:
Insertion of a new paragraph 6.2.25:
A new paragraph (6.2.25) is inserted as below :
6.2.25 | Pharmaceuticals | ||
6.2.25.1 | Greenfield | 100% | Automatic |
6.2.25.2 | Existing companies | 100% | Government |
4. The above decision will take immediate effect. It would be reviewed after a period of six months.
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