You are here: Home » Economy & Policy » News
Business Standard

Govt approves 100% FDI in medical devices

The health care sector in India is expected to reach $150 bn in 2017, from $80 bn in 2012, according to various reports

BS Reporter  |  Mumbai 

The central government on Wednesday approved 100 per cent foreign direct investment (FDI) in medical devices via the automatic route. The move came as a relief to the Indian health care sector, because at the moment, India imports about 70 per cent of its requirement for medical devices.

Under the automatic route, there will be no need for Foreign Investment Promotion Board’s permission to acquire an existing company or set up a new manufacturing unit in the medical devices sector.

According to Vrinda Mathur, director at Grant Thornton India, the move will give India’s medical devices sector the much-needed impetus and capital to focus on capacity building and product development. It will also “set the foundation for India to become a significant player in the global medical devices market just like pharmaceuticals”, he said.

“Easing of norms for medical devices industry by creating special carve out in the extant FDI policy on pharma sector will encourage FDI inflows in this area,” said the official statement issued after the Union Cabinet meeting in New Delhi.

“In this age of super specialisation, if medicines and pharma are one aspect, in which India has attained a certain amount of core competence, we still haven’t achieved that in medical devices, particularly which are to be installed in human body for the purpose of treatment,” Arun Jaitley said on Wednesday.

According to various reports, the health care sector in India is expected reach $150 billion in 2017, from $80 billion in 2012.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, December 25 2014. 00:50 IST
RECOMMENDED FOR YOU
.