New Delhi: Prime Minister Manmohan Singh on Saturday said that the government is trying to bring greater clarity on allowing foreign capital inflows in the domestic pharma sector.
"We are bringing greater clarity the FDI (foreign direct investment) policy in the pharma sector," he said in his address at the annual general meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI).
His statement came following the cabinet decision that all brownfield FDI in pharma companies will have to be approved by the Foreign Investment Promotion Board (FIPB) until the Competition Commission of India (CCI) gets the power to take decisions on foreign investments in the sector.
This effectively means that even minority foreign investments which are less than 49 per cent will have to seek the approval of FIPB.
The pharma companies who need foreign investments to support their expansion plans are worried that the process will get delayed if FIPB does not provide prompt approval.