Sharma says govt looking at concerns over FDI in pharmaCommerce and Industry Ministry has also raised serious concerns over the spate of mergers and acquisitions of Indian pharma companies. ‘Negative narrative’ cast adverse impact on economy:

Government is looking at concerns raised by many over FDI policy for the pharma sector amidst increasing number of acquisitions of domestic firms by MNCs, Commerce and Industry Minister Anand Sharma said today.

The Commerce and Industry Ministry has also raised serious concerns over the spate of mergers and acquisitions of Indian pharma companies. It is in the process of floating a draft Cabinet note proposing some major changes in the FDI policy to protect the Indian generic industry.

Many have raised concerns that availability and affordability of off-patent medicines will become a serious issue with multinational companies continuously acquiring local generic pharmaceutical companies.

“Concerns are being discussed particularly about some sectors which are very sensitive. The verticals on cancer injectables. We are looking at it,” Sharma told reporters here.

He also asserted that India will continue to allow FDI in the pharma sector.

“But we continue to allow FDI. (We are) looking at (sectors) where more R&Ds is there, more capacity addition is there,” he added.

On August 16, a high-level meeting chaired by Prime Minister Manmohan Singh took stock of the situation.

The Department of Industrial Policy and Promotion (DIPP) has said that multi-national companies which are acquiring domestic firms have spent less than one per cent of their total sales in R&D in India.

Over 96 per cent of the total FDI in the sector between April 2012 and April 2013 has come into brown-field (existing) pharma firms.

During April 2000 and May 2013, India has attracted FDI worth $11.31 billion, which is 6 per cent of the total foreign inflows.

Earlier, a Parliamentary committee had suggested a ‘blanket ban’ on FDI in existing pharmaceutical companies, saying the policy in the sensitive sector should be dictated by public good.

The Finance Ministry haD recently cleared a Rs 5,168- crore proposal of US-based pharmaceutical firm Mylan Inc’s to acquire Indian generic drugs company Agila Specialties.

Other big acquisitions include Shantha Biotechnics by French pharma company Sanofi-Aventis. In 2008, Japanese firm Daiichi Sankyo had bought out the country’s largest drug maker Ranbaxy for $4.6 billion.

On the proposal to shut petrol pumps during night to control the fuel demand, Sharma said rising oil prices was a matter of concern for the government.

“We are going through a  difficult situation…Surely the energy sector as a whole and skyrocketing prices of the bent crude have been a matter of concern and they do impact our economy adversely particularly at a time when we are facing strong headwinds…S o surely measures are being taken,” he added.

JAIPUR: An atmosphere of ‘negative narrative’ in the country cast adverse impact on the economy and contributed to the present crisis, Commerce Minister Anand Sharma said today.

“Present state of economy is a matter of concern for all but rupee is not the only currency which has been impacted. It is a global crisis and other economies have also been affected. But, in India, atmosphere was made negative.

“Atmosphere of negative narrative was made in the country. Presumptive theory was followed, particularly in the case of 2G spectrum allocation. Question mark was put on government’s move and decisions which proved to be a negative aspect,” he told reporters here.

He said that foreign direct investment in the country during the UPA-I and II rule was approximately 268 billion USD which, he said, remained high as compared to previous years.

“Due to certain hurdles and problems, we despite substantial reserve of coal within the country, had to import coal which had a negative impact on the current account deficit,” Sharma said.

He said the economy has strong macro-economic factors. “We also have high rates of national saving and national investment (31 and 35 per cent respectively), and also received remittance of USD 70 billion. The need today is to have confidence and to improve atmosphere,” he said.

Sharma was in the city to review progress of Delhi-Mumbai Industrial corridor.

He said that two National Investment and Manufacturing Zones out of total 8 sanctioned for the entire DMIC project have been proposed in Rajasthan from where 39 per cent of the corridor will pass from the state.