The Government on Tuesday opened the medical devices sector to 100 per cent foreign direct investment (FDI) through the automatic route, a move which would facilitate manufacturing of equipments, including diagnostic kits and other devices.
"Easing of norms for medical devices industry by creating special carve out in the extant FDI policy on pharma sector will encourage FDI inflows in this area," said an official statement issued after the Union Cabinet meeting. The Pioneer had on October 20,first reported that Government is mulling a separate FDI policy in the medical equipment sector.
The 100 per cent FDI, it added, will be permitted under the automatic route, meaning a foreign investor will not have to seek the permission of Foreign Investment Promotion Board to acquire an existing company or set up a new manufacturing unit in the medical devices sector.