The Government today said there is no move "at present" to restrict foreign direct investment in the pharmaceutical sector despite suggestions for a cap.
"At present, there is no move to restrict FDI in the pharmaceuticals sector," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply in the Lok Sabha.
As per the present policy, 100 per cent FDI is allowed in drugs and pharmaceuticals sector. Besides, the approval is given through an automatic route.
However, the Department of Industrial Policy and Promotion has issued a discussion paper listing cap on the FDI in pharmaceuticals as one of the options before the country.
Scindia said some of the responses from the stakeholders have suggested "an FDI cap and bringing the sector under the government route".
In a separate reply, Scindia said India's exports of drugs, pharmaceuticals and fine chemicals increased from Rs 30,759 crore to Rs 42,091 crore, showing an annual growth of 8.16 per cent between 2007-08 and 2009-10.
"India is recognized world over for its low-cost manufacturing capabilities and is a globally acknowledged source of high quality affordable generic medicine,"he said.
