Government of India
Ministry of Commerce & Industry
Department of Industrial Policy & Promotion
Press Note No.3 (2011 Series)
Subject: Review of the policy on Foreign Direct Investment in pharmaceuticals sectorinsertion of a new paragraph 6.2.25 to ˜Circular 2 of 2011-Consolidated FDI Policy™
1.0 Present Position:
Foreign Direct Investment (FDI), up to 100%, under the automatic route, is permitted in the pharmaceuticals sector.
2.0 Revised Position:
The Government of India has reviewed the extant policy on FDI and decided as under:
(i) FDI, up to 100%, under the automatic route, would continue to be permitted for greenfield investments in the pharmaceuticals sector.
(ii) FDI, up to 100%, would be permitted for brownfield investments (i.e. investments in existing companies), in the pharmaceuticals sector, under the Government approval route.
3.0 Accordingly, the following amendment is made in ˜Circular 2 of 2011- Consolidated FDJ Policy™, dated 30.09.2011, issued by the Department ofIndustrial Policy & Promotion:
Insertion of a new paragraph 6.2.25:
A new paragraph (6.2.25) is inserted as below:
4.0 The above decision will take immediate effect. It would be reviewed after a period of six months.
Joint Secretary to the Government of India
D/o IPP File No.: 1/16//2010-FC-I dated: 8th November, 2011
Copy forwarded to:
1. Press Information Officer, Press Information Bureau- for giving wide publicity to the above Press Note.
2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press Note on DJPP™s website.