Updated on 22 July 2013
"The health ministry is concerned that if the FDI policy on pharma remains unchanged, it would adversely impact the availability of essential drugs, production capacity and supply of low priced drugs," the official added.
In 2011, a panel had recommended giving more teeth to the Competition Commission of India (CCI) in allowing mergers and acquisitions in the pharmaceutical sector and not changing the FDI rules. However, on learning that the CCI Act could not be amended, the government worked out another mechanism. All proposals concerning FDI in existing companies would be taken up by the Foreign Investment Promotion Board.