New Delhi : The Commerce and Industry Ministry has circulated a draft Cabinet note for inter-ministerial comments on liberalising foreign direct investment (FDI) policy in medical devices. The government is looking at relaxing the policy for the cash-starved medical devices sector to attract more investments and boost domestic manufacturing, sources told PTI. India allows 100 per cent FDI in pharma sector.
While FDI is permitted through automatic route in the case of greenfield investment or new venture, the Foreign Investment Promotion Board (FIPB) approval is required in the case of brownfield or in existing companies. Besides, there are several other riders also. The Commerce and Industry Ministry wants to put the sector under automatic approval route, they added. As per estimates, India imports about 70% of its medical devices needs. The industry size is about $7 billion.
