Seven Foreign Direct Investments of FDIs were approved by the Foreign Investment Promotion Board of India for ventures in local pharmaceutical firms. This approval shut down speculations over the local pharmaceutical sector's unstable performance in the upcoming years.
Along with this approval, the Foreign Investment Promotion Board deferred three proposals in the industry. The three projects had issues with ownership and will be handed over to the country's Department of Industrial Policy and Promotion for further clarification and investigation.
The Department of industrial Policy and Promotion is responsible for the framework of the FDI policy. It will review the said policy to ensure the safety of the investments in the healthcare sector. The deferred proposals include Singapore's GlaxoSmithKline Pte Ltd., Mumbai's Ferrint Therapeutics and Mauritius based Castleton Investment Ltd.
The current policy allows foreign direct investments on new companies to ensure approval with certainty. However, existing foreign investments in pharma companies still require the FIPB approval.
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