India will tighten scrutiny over foreign takeovers of Indian pharmaceutical firms as part of discussions meant to ease concerns over the domestic drug industry in the country.
From now, "brownfield" investments, proposals for mergers and acquisitions of Indian pharmaceutical firms will be examined by the Foreign Investment Promotion board for up to six months.
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The Competition Commission of India, which will receive strengthened powers as part of the reforms, will scrutinise proposed deals to determine any implications on the domestic drug market.
The move comes after health officials expressed concerns that India’s foreign direct investment regime has been culpable of making some medicines less affordable by the Indian population.
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