Even as debate is raging over restricting the Foreign Direct Investment (FDI) in the pharmaceutical sector and checking the take-overs of Indian companies by the multinationals, the available data showed that the FDI in the sector has come down during the current year so far.


Against a total FDI of Rs.1005.17 crore during 2009-10, this year so far the sector attracted only Rs.834.92 crore foreign investment with just only a couple of weeks left in the fiscal year. As of now, the total FDI in the sector since 2007 stood at Rs.3976.66 crore, according to the information collected by the Department of Pharmaceuticals.


The FDI flow witnessed a high point in 2007-08 when the investment touched Rs.1326.45 crore but it came down to Rs.810.12 crore during the next year of 2008-09. Riding on a couple of take-overs, the amount again went up to Rs.1005.17 crore in 2009-10, the sources said.


The take-overs of Indian companies by multinationals in the recent years have caused widespread apprehension not only among the local industry and the public interest groups, but also within the government with the Union Health Minister Ghulam Nabi Azad openly arguing for curtailing the limit of FDI. While the Health Ministry wanted to amend the current automatic FDI approval route and pass it through Foreign Investment Promotion Board to curtail the limits, the Commerce Ministry is learnt to be in favour of reviewing the FDI.


“After the recent takeovers of Indian companies by Multi National Companies (MNCs) it was felt in various quarters that this could increase the possibility of other takeovers of Indian companies. This would have impact on the Indian health care scenario as well as on pricing and availability of medicines in India. As such an appropriate assessment requires to be made. The Department of Pharmaceuticals have requested the Department of Commerce to conduct a study on the recent takeovers of Indian companies by the MNCs. Thereafter, the recommendation could be placed before the Economic Advisory Council to the Prime Minister and/or the Competent Authority,” official sources in the DoP said.