Yesterday, the Department of Industrial Policy and Promotion in the Indian Government's Ministry of Commerce and Industry issued a press note changing the rules on foreign direct investment (FDI) in pharmaceuticals. Under the press note, FDI in existing pharmaceutical ventures will now require prior government approval, while FDI in new pharmaceutical ventures will not require government approval. The decision reversing the rules on FDI in pharmaceutical ventures will be reviewed in six months.
This press note effectively implements the decision taken by a high level ministerial group last month.