The Union Cabinet has given its nod for the amendment of the existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100 per cent under the automatic route for manufacturing of medical devices subject to certain conditions.
The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth US$ 13.32 billion between April 2000 and September 2015, according to data released by the Department of Industrial Policy and Promotion (DIPP).
Oflate , major investments have had been seen in the Indian pharmaceutical sector by prominent players like Cipla, Glaxosmithkline, Lupin , Strides Arcolab, Cadila Healthcare , Torrent , SRF , Intas Pharmaceuticals etc.
Government Initiatives so far in India
The Addendum 2015 of the Indian Pharmacopoeia (IP) 2014, published by the Indian Pharmacopoeia Commission (IPC) on behalf of the Ministry of Health & Family Welfare, will result in enhancement of the quality of medicines that would in turn promote public health and accelerate the growth and development of pharmaceutical sector.
The Government of India(GOI) unveiled ‘Pharma Vision 2020’ aimed at making India a global leader in end-to-end drug manufacture. Approval time for new facilities has been reduced to boost investments.
The Government of India has also introduced the folowing mechanisms such as
a. Drug Price Control Order and
b. National Pharmaceutical Pricing Authority
to deal with the issue of affordability and availability of medicines.
Some of the major initiatives taken by the government to promote the pharmaceutical sector in India are as follows:
The Indian pharmaceutical market size is expected to grow to US$ 100 billion by 2025, due to increasing consumer spending power, rapid urbanisation, and raising healthcare insurance among others.
Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the rise.
The Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies..
References: i) Consolidated FDI Policy, Department of Industrial Policy & Promotion (DIPP), Press Information Bureau (PIB), Media Reports, Pharmaceuticals Export Promotion Council
Source : http://indiainbusiness.nic.in/
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