In a move to boost Prime Minister Narendra Modi's initiated ‘Make in India’ campaign, the Union Government is planning to allow a 100 per cent Foreign Direct investment (FDI) in medical devices, not on generic drugs.
In a bid to boost its 'Make in India' initiative, Prime Minister Narendra Modi-led NDA government has plans to approve 100 per cent FDI in the medical devices, according to a leading business channel ET Now report.
The report says the Union Cabinet is expected to take up the proposal in coming weeks, which is in the final stage.
It is said that the FDI in medical devices would be allowed through automatic route in already existing plans as well as new setting up plants.
The ET Now report says, "The FDI will be on the automatic approval route, both for brownfield as well as for greenfield. In pharmaceuticals, while 100 per cent FDI through the automatic route is allowed in greenfield (setting up new plants), in brownfield (existing plant), you still need an approval from the government."
The report also said that this FDI in medical devices will not have an impact on generic drugs as the country is lagging behind in the manufacturing of medical devices and imports over 60 per cent of medical devices.
The move is seen as government's push to boost the manufacturing sector.
With the FDI in medical devices, foreign companies would be allowed to manufacture products in India and also takeover existing plants, says the news channel.
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