Question : FDI IN PHARMACEUTICAL SECTOR

(a) whether the Government proposes to encourage and approve the Foreign Direct Investment (FDI) in pharmaceutical sector/drugs manufacturing industry;

(b) if so, the details thereof and the salient features of the FDI policy in pharmaceutical sector;

(c) the time by which a final decision of FDI in pharmaceutical sector/drugs manufacturing industry is likely to be taken;

(d) the present status of FDI in the sector; and

(e) the domestic pharma market growth registered during each of the last three years and the current year?

MINISTER OF STATE(INDEPENDENT CHARGE) IN THE MINISTRY OF CHEMICALS AND FERTILIZERS AND MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION (SHRI SRIKANT KUMAR JENA)

(a) to (d): The Department of Industrial Policy and Promotion who are nodal Department of Foreign Direct Investment(FDI), has informed that the policy for allowing FDI, up to 100% in existing companies, in the Pharmaceuticals sector, under the Government approval route, was introduced vide Press Note 3 of 2011, dated 08.11.2011. This provision has since been incorporated under “Circular 1 of 2012 – Consolidated FDI Policy”, effective from 10.04.2012.

(e): As per Economic Intelligence Service of Centre for Monitoring India Economy Pvt. Ltd. Mumbai, the sale value of Drugs and Pharmaceuticals during March’2009, March’2010 and March’2011 are as under:

Year	Rs. (in crores)
March’ 2009	89500.0
March’ 2010	96250.0
March’ 2011	108250.0