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FDI inflow in drugs and pharma during April-June grows to $130 million

Gireesh Babu, New Delhi
Wednesday, September 29, 2021, 08:00 Hrs  [IST]

The Foreign Direct Investment (FDI) inflow into drugs and pharmaceuticals industry in the country for the first three months of the current fiscal year has seen a jump to $130 million, or Rs. 956 crore, as compared to $46 million (Rs. 351 crore) during the same period of last year.

According to the statistics available with the Department for Promotion of Industry and Internal Trade (DPIIT), for the period between April to June, 2021, FDI inflow into drugs and pharmaceuticals stood at $130 million, which was three per cent of the total FDI inflows into the country.

While the FDI inflow for the first three months of the fiscal year 2020-21 was less compared to the same period this year, the 12 months from April 2020 to March, 2021, the total FDI inflow into the sector has grown to $1.49 billion (Rs. 11,051 crore) as compared to $518 million (Rs. 3,650 crore) during April 2019-March 2020 period, shows the statistics. For the fiscal 2018-19, the FDI inflow into drugs and pharmaceuticals was at $266 million (Rs. 1,842 crore).

The cumulative FDI investments into the sector has grown to $18.12 billion (Rs. 99,786 crore) from April, 2000 to June 2021. This was $16.55 billion (Rs. 88,165 crore) till June, 2020, which means a $1.57 billion growth in terms of FDI investments into the sector between April-June 2020, and April-June 2021.

The Centre has allowed 100 per cent FDI in pharmaceuticals in India under the automatic route for green-field pharma. Hundred per cent FDI in drugs and pharmaceuticals in India is allowed in brownfield pharma, wherein 74 per cent FDI is permitted under the automatic route and after that through government approval.

According to the monthly report of the Department of Pharmaceuticals for the month of July, 2021, the department had 16 pending FDI proposals at the end of the month, while it has disposed of two during the month.

The country supplies 62 per cent of the global demand for various vaccines, 40 per cent of the generic market in the US and 25 per cent of all medicine in the UK. India has around 20 per cent market share of generic medicines in terms of volume in the global pharmaceutical sector.

India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different active pharmaceutical ingredients (APIs). The export of generic drugs is one of India's core strengths. The country's pharmaceutical exports stood at $24.44 billion in FY 20-21. The industry has granted incentives totaling Rs 21,940 crore, according to the statistics from the Government of India.


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