New Delhi, Jan 8 (KNN) Overlooking concerns about scarcity of affordable drugs  in the market, the government has decided to continue with the policy of allowing 100 per cent foreign direct investment (FDI) in the pharma sector.

According to an official statement by the Department of Industrial Policy and Promotion (DIPP), “The government 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 FIPB."

At present, India allows 100 per cent FDI in Greenfield projects through the automatic route and 100 per cent in brownfield projects through the Foreign Investment Promotion Board (FIPB) approval route.

Because of the rising concern about the increasing number of multinationals acquiring Indian pharma firms, DIPP had earlier proposed for norms to tighten the FDI policy for pharma sector and reduce the FDI cap to 49 per cent from 100 per cent critical pharma verticals. (KNN Bureau/SD)