The Cabinet considered the proposal of the Ministry of Commerce and Industry, for review of the policy on foreign direct investment in the pharmaceutical sector.

The Cabinet decided that the current policy in brownfield and greenfield projects in the pharmaceutical sector will continue subject to the additional condition that in all cases of FDI in brownfield pharma, there will not be any non-compete clause in any of the inter se agreements.

Non-compete prohibition in brownfield FDI restricts contractual restraints while preserving existing pharma FDI policy. The policy continues to permit foreign direct investment in both brownfield and greenfield pharmaceutical projects, with the specific operative condition that brownfield FDI must not include any non-compete clause in inter se agreements; other policy parameters remain as before.