New Delhi: India's pharmaceuticals sector has received FDI of USD 1 billion, the highest among the top 10 segments, during the April-June period this year amid concerns over increasing acquisitions of domestic firms by multinationals.
Foreign Direct Investment (FDI) in drugs and pharmaceuticals during April-June 2012 stood at USD 465 million, according to the latest data of Department of Industrial Policy and Promotion (DIPP).
The DIPP is working on a cabinet note to include major changes in the FDI policy in the sector to protect domestic generic (off-patent) firms.
"The DIPP is concerned that an overwhelming majority of foreign direct investment in pharma is coming only in existing (brownfield) units," an official said.
During April 2000 and June 2013, India has attracted FDI worth USD 11.31 billion, which is 6 percent of the total foreign inflows.
The Finance Ministry has recently cleared a Rs 5,168 crore proposal of US-based pharmaceutical firm Mylan Inc's to acquire Indian generic drugs company Agila Specialties.
Other big acquisitions include Shantha Biotechnics by French pharma company Sanofi-Aventis. In 2008, Japanese firm Daiichi Sankyo had bought out the country's largest drug maker Ranbaxy for USD 4.6 billion.
The other nine sectors which received FDI during April- June quarter of the fiscal include services (USD 945 million), automobile industry (USD 515 million), computer software and hardware (USD 171 million) and construction development (USD 167 million).
During the first quarter of the fiscal, the country attracted highest FDI from Singapore (USD 1.85 billion), followed by Mauritius (USD 1.09 billion), Germany (USD 510 million) and the Netherlands (USD 408 million).
First Published: Sunday, September 1, 2013, 13:50