Updated on 17 June 2013
Currently, India permits 100 percent FDI in pharmaceutical sector through automatic approval route in the new projects but the foreign investment in the existing pharmaceutical companies were allowed only through FIPB's approval. In 2008, Japanese firm Daiichi Sankyo had bought out the country's largest drug maker Ranbaxy for $4.6 billion. US-based Abbot Laboratories had acquired Piramal Health Care's domestic business for $3.7 billion. US-based Mylan bought Matrix Lab while Dabur Pharma was acquired by Singapore's Fresenius and Orchid Chemicals by US-based Hospira.
Since April 2000, $10.3 billion FDI has come into the Indian pharmaceuticals sector, nearly 5 percent of the total foreign inflows the country has received.