100% FDI in med­i­cal de­vices

Down to Earth - - THE FORTNIGHT - THE CEN­TRAL

gov­ern­ment has ap­proved 100 per cent for­eign di­rect in­vest­ment ( in the med­i­cal de­vices sec­tor via au­to­matic route. Med­i­cal de­vices come un­der the phar­macy sec­tor in which 100 per cent through au­to­matic route is per­mit­ted only in case of new ven­tures. Ap­proval of For­eign In­vest­ment Pro­mo­tion Board is needed in the case of brown field in­vest­ment ac­qui­si­tion of ex­ist­ing com­pa­nies. At present, the med­i­cal de­vices sec­tor is sub­jected to lim­its and other con­di­tions such as manda­tory gov­ern­ment nods as in the case of brown field in­vest­ments in the phar­macy sec­tor. But the new pol­icy does away with this distinc­tion in the med­i­cal de­vices sec­tor. For long, in­dus­try has been de­mand­ing open­ing up the med­i­cal de­vice in­dus­try for through au­to­matic route, say­ing that in the ab­sence of big firms for med­i­cal de­vices in In­dia, the threat of merger or ac­qui­si­tion does not ex­ist.

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