Pharmaceuticals Export Promotion Council of India (Pharmexcil) has urged the Commerce ministry to allow foreign direct investments (FDI) in the brownfield projects to boost investments in this sector. In fact, the Council stressed that liberalisation of the FDI norms in brownfield projects will go a long way in helping the exporting companies to meet the growing market challenges, that comes with changing regulatory norms world-wide.
This demand comes in the wake of repeated representation from the exporters asking for FDI in pharma companies exclusively engaged in exports of pharma products. Experts point out that since the FDI is for exporting companies the FDI norms should not become a reason for concern, as investment will not have any direct impact on the Indian market like the fear of impacting the price of the drugs.
Dr P V Appaji, director general (DG), Pharmexcil stressed, “We are hopeful that the new government will take into consideration the market dynamics of the exporting companies as well before taking any decision. Opening up FDI avenue for pharma exporters will help the companies in their growth, enabling them with more business opportunities, especially in the regulated market like US and UK due to the the changing costly regulatory setup. There is a huge attraction for Indian companies in the overseas market especially the exporting companies so the government should try to cash this opportunity, by diluting the FDI norms to help the exporters to utilise this factor.”
He further assuaged the doubts about the FDI impact on local market by stating that it will not impact the Indian market as the FDI should be curtailed only for exporters and thus will not lead to increase in the prices nor timely access of medicines, increase of the country’s dependence on imports and, result in curtailing innovation on low-cost medications for treating diseases etc.