Hands-Off Policy on FDI in Pharma
In the midst of concerns regarding foreign acquisitions in the industry leading to increased drug prices, India is dubious of enforcing any restraints on foreign direct investment in drugmakers, according to a report by the Telegraph, Calcutta.
Declaring the pharma sector as “sensitive,” a committee headed by Plan panel member Arun Maira and set up by the Prime Minister is in two minds regarding a proposition to decrease foreign investment in pharma from 100 percent to 49 percent.
While the opportunity for easy acquisition is causing anxieties amongst health and industrial policy departments, Plan panel and drugmakers believe that the move will be perceived as “retrograde and send a wrong signal to global investors.”
There are rising concerns about the outcome of multi-national corporation companies acquiring Indian firms resulting in a price hike of generics as well as brand name drugs researched by Indian firms.