FDI to 74% in brownfield pharma under automatic route announced

Q.  Apple Store will open its first outlet following revision of FDI norms. What percentage of FDI has been announced in existing brownfield pharmaceutical companies through automatic route?
- Published on 21 Jun 16

a. 71 percent
b. 72 percent
c. 73 percent
d. 74 percent

ANSWER: 74 percent
 
FDI in brownfield pharma under automatic route was up to 74 percent. Government on June 20 allowed up to 74 percent FDI in existing pharmaceutical companies via automatic route with the aim to promote the sector.
  • Earlier 100 percent FDI was permitted through the government approval route
  • It has been decided to permit up to 74 percent FDI in automatic route for brownfield pharma and the government approval route beyond 74 percent will continue.
  • 100 percent FDI under automatic route in greenfield pharma is permitted while approval route for 100 percent FDI in brownfield pharma is under the approval route.
  • FDI in brownfield projects has been an issue impacting accessibility and growth of the generic industry in the nation
  • Market size of India’s pharma company is USD 20 billion. Acquisitions in this field include Daiichi Sankyo’s purchase of Ranbaxy, Abbot Lab’s acquisition of Piramal Health Care domestic business. Mylan purchased Matrix Lab while Dabur Pharma was acquired by Fresenius and Sanofi Aventis recently purchased Shanta Biotech

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