The government today said it has raised FDI limit in existing pharmaceutical companies to attract required capital, international best practices and latest technologies in the sector.
The Foreign Direct Investment (FDI) cap in brownfield pharma was recently raised to 74 per cent under the automatic route from 49 per cent earlier. Beyond 74 per cent, foreign investment is permitted under the approval route.
The move is "aimed at attracting required capital, international best practices and latest technologies in the sector", Commerce and Industry Minister Nirmala Sithraman said in a written reply to the Rajya Sabha.
She said the government, while reviewing FDI policy in the sector, put in place necessary safeguards by providing that non-compete clause would not be permitted.
This will enable Indian promoters to operate in the same line of business in new ventures, she added.
Replying to a separate question, Sitharaman said that as many as 3,088 Industrial Entrepreneurs Memorandum (IEMs) were signed between January 2015 and June this year envisaging an investment of Rs 4.8 lakh crore.
As many as 427 IEMs were signed in electrical equipment sector which was followed by textiles (415) and food processing (305).
Similarly, maximum IEMs were inked in Maharashtra (548) during the period. It was followed by Gujarat (505), Karnataka (247) and Telangana (207).
