The Government's decision to allow up to 100 per cent foreign direct investment (FDI) in the medical devices sector will attract US firms to invest and manufacture in India, according to American Chamber of Commerce (AMCHAM) in India.
"The move by the central government to amend 100 per cent FDI in medical devices will encourage FDI inflows into the sector and will also attract the US companies to invest and manufacture in India,"
Amcham India Executive Director Ajay Singha said. This measure will further help create a more conducive manufacturing environment for US MNCs in India, he added.
The initiative of 100 per cent FDI under the automatic route will allow global medical device companies to set up their base in India, strengthening Indian medical devices sector, Amcham said.
Government had last month allowed 100 per cent FDI under automatic route both in greenfield and brownfield projects in medical devices sector to encourage manufacturing of equipments, including diagnostic kits and other devices.