New Delhi: With serious concerns being raised from various departments regarding the acquisition of Indian drug firms by global multinational entities, the government is likely to consider reducing the foreign direct investment cap in the pharma sector.
According to reports, the Cabinet is likely to take up the decision Monday to reduce the FDI cap in critical areas of the pharma sector to 49 percent.
Led by DIPP, several departments have raised concern about the continuous acquisition of Indian drug firms by foreign firms.
The Cabinet is also expected to relax FDI norms in the housing sector.
"The Cabinet will review the FDI policy in pharmaceutical and housing tomorrow (Monday)," an official said on Sunday.
With the current FDI cap in pharma sector at 100 percent, the Department of Industrial Policy and Promotion (DIPP) has proposed to reduce it to 49 percent in the "rare or critical pharma verticals".