Press Information Bureau
Government of India
Ministry of Chemicals and Fertilizers
10-December-2010 15:37 IST
FDI Cap on Pharma Companies
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.

The representatives of various MNCs including from US drug companies visit India to see that their business interest in India is protected. The Government on its part see to it that the interest of the patients are protected. Compulsory License are to be issued under the provisions of Indian Patent Act, 1970 which was last amended in 2005.

This information was given by the Minister of State for Chemicals and Fertilizers Shri Srikant Kumar Jena in a written reply in the Rajya Sabha today.