India is unlikely to impose any restriction on foreign direct investment in drugmakers amid concern about foreign takeovers in the industry increasing drug prices, The Telegraph – Calcutta reported.
A committee set up by the Prime Minister and headed by Plan panel member Arun Maira is split over a proposal to reduce foreign investment in pharma to 49 percent from 100 percent by declaring the sector “sensitive.”
The health and industrial policy departments are apprehensive of easy takeover opportunities, while the Plan panel as well as drugmakers feel the move will be “retrograde and send a wrong signal to global investors.”
It is also feared that multi-national corporation companies buying out Indian firms will increase the prices of generic drugs, as well as those of brand name drugs researched by Indian firms.
