Review of the existing policy on Foreign Direct Investment in the Pharmaceuticals Sector. - FEMA - Press Note No. 1 (2014 Series)

Government of India Ministry of Commerce Industry Department of Industrial Policy Promotion Press Note No. 1 (2014 Series) Subject : Review of the existing policy on Foreign Direct Investment in the Pharmaceuticals Sector. 1.0 Present Position : 1.1 Paragraph 6.2.18 of Circular 1 of 2013-Consolidated FDI Policy , effective from April 5, 2013, relating to the Foreign Direct Investment policy in the pharmaceuticals sector is as under: 6.2.18 Pharmaceuticals 6.2.18.1 Greenfield 100% Automatic 6.2.18.2 Brownfield 100% Government Note : Government may incorporate appropriate conditions for FDI in brownfield cases, at the time of granting approval. 2.0 Reviewed Position : 2.1 The Government of India has reviewed the position in this regard and decided that the existing policy would continue with the condition that non-compete clause would not be allowed except in special circumstances with the approval of the Foreign Investment Promotion Board. 3.0 The above decision will take immediate effect. (Anjali Prasad) Additional Secretary to the Government of India D/o IPP File No. : No. 1/16/2010-FC-I dated 8 th January 2014 Copy forwarded to : 1. Press Information Officer, Press Information Bureau-for giving necessary publicity. 2. NIC Section in the Department of Industrial Policy and Promotion for uploading the Press Note on DIPP s website.