Updated on 7 February 2014
The primary reason for this opposition could be that in a country like India where practical and administrative bottlenecks exist, allowing only Greenfield projects is not going to lure foreign investors into the sector and this could not be a solution for increasing CAD in the short term. The M&A involving foreign acquirers also increased from 8 deals in 2012 to 11 deals in 2013, with the total deal value almost increasing 6.4 times between 2012 and 2013. The largest deal involved US $ 1.85 billion acquisition of Agila Specialties Private Limited by the US based Mylan, Inc.
In a nutshell the increasing presence of FDI in Indian Pharma is expected to benefit the Industry in the longer run with more significant contribution to country's economic growth.