The Union Government has constituted a Group of Ministers (GoM) to examine the proposals on revision of sectoral foreign direct investment (FDI), foreign equity caps and simplification of procedures. This may help fresh flow of FDI in pharmaceutical sector.

Dr. Ajay Dua, secretary, Department of Industrial Policy and Promotion (DIPP) provided this information on the sidelines of the World Intellectual Property Organisation (WIPO)-Federation of Indian Chambers of Commerce and Industry (FICCI) seminar on ‘Enhancing global competitiveness of Indian life sciences industry through the strategic use of the patent system’ in New Delhi.

Dr. Dua said, “The GoM, constituted on December 1, comprises the Finance Minister, P. Chidambaram, Agriculture Minister, Sharad Pawar and Commerce and Industry Minister, Kamal Nath. The GoM would consult the ministers in-charge of the sectors concerned while discussing FDI caps and procedural simplification.”

According to Dr. Dua, the DIPP suggestions on easing of procedural norms for attracting FDI and foreign equity caps, which were presented to the Cabinet, have now been referred to the GoM.