Page 67 - NPPA full book
P. 67
GLOBAL INVESTMENTS
IN INDIAN PHARMA SECTOR
vibrant pharmaceu cal industry is thriving on the back of strong
investments both from the domes c and foreign investors.
APharmaceu cal is one of the top ten a rac ve sectors for foreign
investment in India because growth rate stays around 7 - 8% in the drug sector
and 15 - 16% in the medical device sector. In the past nine years, the Indian
pharma industry has grown steadily at a CAGR of 9.43%.
The Foreign Direct Investment (FDI) performance in the
pharmaceutical sector has been excellent. From April
2000 to March 2023, the cumulative FDI equity inflow in
the Drugs and Pharmaceuticals industry has been US$
21.46 billion. This constitutes almost 3.38% of the total
FDI inflow received across sectors in India.
To give impetus to foreign investment in the sector, the government has allowed
100% foreign investment under automa c route in Medical Devices. Similarly,
foreign investments in pharmaceu cal Greenfield projects are allowed up to
100% under the automa c route and for brownfield pharmaceu cal projects,
foreign investment beyond 74% require government approval.
Bulk Drug Plant of Aurobindo Pharma, Hyderabad
56 57
