Drugs & Pharmaceuticals largest sectors for revenue, employment: Mandaviya

In 2015-16, the FDI equity inflows to Drugs and Pharmaceutical Sector was Rs. 4,975 crores.

The Union Minister of State for Shipping (I/C) and Chemicals & Fertilizers, Shri Mansukh Mandaviya has said that the Drugs & Pharmaceuticals sector is witnessing an era of unparalleled growth and innovation. "Drugs & Pharmaceuticals are India's largest sectors- both in terms of revenue and employment," he said here today.

Keeping in line to attract larger FDI in the Pharmaceutical sector, Shri Mandaviya said the government reviews FDI Policy on an ongoing basis with a view to liberalize and simplify the FDI Policy progressively, so as to improve the country's investment climate by providing ease of doing business. Also, various measures are taken under "Make in India" initiatives facilitating investment, fostering innovation and thereby promoting a robust business environment in the country, he added.

In 2015-16, the FDI equity inflows to Drugs and Pharmaceutical Sector was Rs. 4,975 crores. It has increased to Rs.5,723 crores in 2016-17 and further to Rs. 6,502 crores in 2017-18.

The Government amended the Foreign Direct Investment (FDI) policy on the Pharmaceutical sector in June 2016 by allowing 100% FDI for Greenfield Pharmaceutical projects and up to 74% FDI for Brownfield pharmaceutical projects through automatic route and beyond that through government's approval.

FDI is largely a matter of private business decisions and FDI inflows depend on a host of factors such as availability of the natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors.

(With Inputs from PIB)