Press Information Bureau

Government of India

Ministry of Commerce & Industry

19-December-2011 14:29 IST

Pharmaceutical Industry

As per available information, Indian Pharmaceutical exporters are facing intense competition in international markets from China, particularly in Bulk drugs sector.  Competition in formulations is also increasing gradually from China.  India is also facing competition from Brazilian companies in Latin American Countries.  Exports of India, China and Brazil for the last three years are given below:-

In US $ Millions

Source:  UN COMTRADE

            Government has already prepared strategies to double the pharma exports to USD 25 billion by 2013-14, including ‘Increase in the share of India’s Pharma exports to China’.

            As per extant FDI policy, FDI, up to 100% under the automatic route, is permitted for Greenfield investments in the pharmaceuticals sector, while FDI, up to 100%, is permitted for brown field investments (i.e. investments in existing companies), in the pharmaceuticals sector, under the Government approval route.

This information was given by Shri Jyotiraditya M. Scindia,  Minister of State for Commerce and Industry in written reply to a question in the Lok  Sabha today

DS/GK

FDI policy permitting full foreign investment for greenfield and brownfield pharmaceutical projects supports India's export-promotion strategy. Indian pharmaceutical exporters face intensifying competition from China and Brazil; the Government aims to increase pharma exports and India's export share to China. FDI policy permits full foreign investment for Greenfield projects under the automatic route and full foreign investment for Brownfield investments subject to Government approval, forming part of the export-promotion strategy announced by the Ministry of Commerce and Industry.