Review of the policy on Foreign Direct Investment in pharmaceuticals sectorinsertion of a new paragraph 6.2.25 to 'Circular 2 of 2011-Consolidated FDI Policy' . - FEMA - Press Note No.3 (2011 Series)

Government of India Ministry of Commerce Industry Department of Industrial Policy Promotion (FC-I Section) Press Note No.3 (2011 Series) Subject: Review of the policy on Foreign Direct Investment in pharmaceuticals sectorinsertion of a new paragraph 6.2.25 to 'Circular 2 of 2011-Consolidated FDI Policy' 1.0 Present Position: Foreign Direct Investment (FDI), up to 100%, under the automatic route, is permitted in the pharmaceuticals sector. 2.0 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. 3.0 Accordingly, the following amendment is made in 'Circular 2 of 2011- Consolidated FDJ Policy', dated 30.09.2011, issued by the Department ofIndustrial 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 1100% Government 4.0 The above decision will take immediate effect. It would be reviewed after a period of six months. (Anjali Prasad) Joint Secretary to the Government of India D/o IPP File No.: 1/16//2010-FC-I dated: 8 th November, 2011 Copy forwarded to: 1. Press Information Officer, Press Information Bureau- for giving wide publicity to the above Press Note. 2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press Note on DJPP's website.