Government will take up on Monday the issue of tightening FDI in existing pharmaceutical companies in the wake of concerns over multinationals taking over domestic drug makers.
“The Cabinet will review the FDI policy in pharmaceutical sector on Monday,” an official said.
The Department of Industrial Policy and Promotion (DIPP) has proposed to reduce FDI cap from 100 per cent to 49 per cent in the “rare or critical pharma verticals.”It has also proposed to incorporate conditions for foreign firms like mandatory investment in R&D and non-compete clause in the shareholders pact.