Medical Devices Industry in a Celebratory Mood after Liberalization of FDI
Published By : 20 Jan 2015 | Published By : QYRESEARCH
The medical devices industry is happy to know that the Department of Industrial Policy and Promotion liberalized FDI in the sector. The move was an anticipated one as December Cabinet was in support of medical devices industry carving a niche for itself with foreign direct investment.
This move will help foreign companies to invest in Indian companies without the need to approach Foreign Investment Promotion Board (FIPB). This liberalization will help bring in funds to the medical devices industry that is in dire need. Government intends to encourage manufacturers to go global with this move.
The liberalization will permit Indian companies to take in FDI up to 100% irrespective of whether it is a new venture or a one that has been in existence since quite some time. Thankfully, the definition of medical devices has been kept broad to ensure that all kinds of medical devices are included under this umbrella.
The new definition is a welcome change, as it gives a freehand to the government to keep redefining the medical devices category. This will help manufacturers to keep experiment and improve their devices.
This has put the medical devices industry in a celebratory mode. As this marks a positive step by DIPP, it open two possibilities. The first one is that of Drugs Act to be amended in order to incorporate the new definition of medical devices and second that the Drugs Act will give a modified definition of medical devices that will finally be replaced as the actual one.