New Delhi: In a move to boost the pharmaceutical sector of the country, the Central government has decided to continue with the 100 percent Foreign Direct Investment (FDI) policy. However, it will be applicable for the upcoming pharma companies.

In a meeting of Cabinet, chaired by Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee, Health Minister Ghulam Nabi Azad, Commerce and Industry Minister Anand Shrama, Chemical and Fertilizer Minister MK Alagiri  and Vice President Planning Commission Montek Singh Ahluwalia discussed in details about the FDI here on Monday.

With a view to enhance manufacturing capacity, technology acquisition in pharma sector, FDI rules have become more transparent.

The FDI will take place within six months after Foreign Investment Promotion Board (FIPB) will clear the acquisition. During this time period, Competition Commission of India (CCI) will prepare requisite rules and regulation for mergers and acquisitions. Thereafter, CCI will get the rights to regulate the process.

JPN/Bureau