Impact on availability and affordability of generic medicines - 100% fdi in pharma

Government decided to retain the policy of allowing 100 per cent foreign investment in the existing pharma firms, brushing aside concerns about non-availability of affordable drugs in view of MNCs takeovers.

It had said the continuous acquisition of Indian pharma companies will severely impact availability and affordability of generic medicines in the country, and asked for a reduction in the FDI cap to 49 per cent from 100 per cent in rare or critical pharma verticals.

However, the Union Cabinet at its meeting dismissed the Department of Industrial Policy and Promotion (DIPP) concerns on this matter.

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