Panel divided on restricting pharma FDI

Sep 04, 2011 - TEENA THACKER |

Age Correspondent

New Delhi

Even as the Union health ministry is pushing for stricter norms with reg-ard to take over of Indian pharmaceutical companies by multinational companies (MNCs), there seems to be a sharp divide within the expert panel mandated to decide on restricting FDI in pharma. The panel is expected to give its recommendations this month.
Apprehending that re-cent trend would impact the affordability, accessibility and availability of drugs in India, the health ministry had urged for stricter norms for the MNCs. In a recent letter written to the ministry of commerce and industry, senior officials in the health ministry had urged to revise the policy of 100 per cent FDI through automatic route in pharmaceutical sector, emphasizing that there was a strong case of bringing FDI in pharma sector through Foreign Investment Promotion Board (FIPB), a government body offering a single window clearance for proposals on FDI.
The Union ministry is of the view that FDI in brownfield ventures sho-uld be capped. “Pharma sector is not like any other sector, it affects the life of the people. We are apprehensive that this trend may affect the cost of the essential medicines. Also, FDI flow into brown field projects does not add to capacity building,” said an official in the ministry. While the Union health ministry feels that the FDI norms should be revisited to ensure healthy growth of pharmaceutical industry, other members in the panel seem to differ. An expert panel from various ministries was constituted in June this year to look into the issue.

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