Government of India

Ministry of Commerce & Industry

Department of Industrial Policy & Promotion

(FC-I Section)

Press Note No.3 (2011 Series)

Subject: Review of the policy on Foreign Direct Investment in pharmaceuticals sectorinsertion of a new paragraph 6.2.25 to ‘Circular 2 of 2011-Consolidated FDI Policy’

1.0 Present Position:

Foreign Direct Investment (FDI), up to 100%, under the automatic route, is permitted in the pharmaceuticals sector.


2.0 Revised Position:

The Government of India has reviewed the extant policy on FDI and decided as under:

(i) FDI, up to 100%, under the automatic route, would continue to be permitted for greenfield investments in the pharmaceuticals sector.

(ii) FDI, up to 100%, would be permitted for brownfield investments (i.e. investments in existing companies), in the pharmaceuticals sector, under the Government approval route.

3.0 Accordingly, the following amendment is made in ‘Circular 2 of 2011- Consolidated FDJ Policy’, dated 30.09.2011, issued by the Department ofIndustrial Policy & Promotion:

Insertion of a new paragraph 6.2.25:

A new paragraph (6.2.25) is inserted as below:

6.2.25 Pharmaceuticals Greenfield 100% Automatic Existing companies 1100% Government

4.0 The above decision will take immediate effect. It would be reviewed after a period of six months.

(Anjali Prasad)

Joint Secretary to the Government of India

D/o IPP File No.: 1/16//2010-FC-I dated: 8th November, 2011

Copy forwarded to:

1. Press Information Officer, Press Information Bureau- for giving wide publicity to the above Press Note.

2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press Note on DJPP’s website.


Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Telegram

taxguru on telegram GROUP LINK

Download our App


More Under Fema / RBI

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

February 2024