100% FDI in medical devices
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.