(a) whether the Government is planning to bring down the Foreign Direct Implement
(FDI) cap in existing pharmaceutical ventures;
(b) if so, the details thereof and the reasons therefor;
(c) whether this matter has been referred to the Planning Commission;
(d) if so, whether the Planning Commission has any role in the FDI policy
or is entrusted with such approvals; and
(e) if so, the details thereof?
MINISTER OF THE STATE(INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND
MINISTER OF THE STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA)
(a) & (b): The recent takeovers of Indian companies by MNCs could increase the possibility of other
takeovers of Indian companies which would have impact on the Indian health care scenario as well as
on pricing and availability of medicines in India. As such an appropriate assessment requires to be
made. The Department of Pharmaceuticals have requested the Department of Commerce to conduct a study
on the recent takeovers of Indian companies by the MNCs. Thereafter, the recommendation could be placed
before the Economic Advisory Council to the Prime Minister and/or the Competent Authority. Department of
Commerce has informed that they have entrusted the task of this study to M/s Ernst & Young.
(c) to (e):The policy for Foreign Direct Implement (FDI) in existing Indian Pharmaceutical Companies has come
in for public comments especially on the issue of takeover of existing Indian pharmaceutical companies by
multi¬national companies. With a view to examine the issues involved in a broader perspectives, Planning
Commission has with the approval of the Hon`ble Prime Minister constituted a High Level Committee (HLC)
under the Chairpersonship of Shri Arun Maira, Member (Industry), Planning Commission to consider all the
relevant aspects.