| Date: |
05-01-2015 |
| Subject: |
100 per cent FDI in medical devices to spur US investment: AMCHAM |
|
NEW DELHI: The government's decision to allow up to 100 per cent foreign direct investment (FDI) in the medical devices sector will attract US firms to invest and manufacture in India, according to American Chamber of Commerce (AMCHAM) in India.
"The move by the central government to amend 100 per cent FDI in medical devices will encourage FDI inflows into the sector and will also attract the US companies to invest and manufacture in India," Amcham India Executive Director Ajay Singha said.
This measure will further help create a more conducive manufacturing environment for US MNCs in India, he added.
The initiative of 100 per cent FDI under the automatic route will allow global medical device companies to set up their base in India, strengthening Indian medical devices sector, Amcham said.
Government had last month allowed 100 per cent FDI under automatic route both in greenfield and brownfield projects in medical devices sector to encourage manufacturing of equipments, including diagnostic kits and other devices.
"Easing of norms for medical devices industry by creating special carve out in the extant FDI policy on pharma sector will encourage FDI inflows in this area," an official statement issued after the Union Cabinet meeting had said.
While the decision of the government has been hailed by many of the stakeholders, Association of Indian Medical Device Industry (AIMED), a body of domestic manufacturers, had warned that such a move could make Indian firms easy picking for MNCs.
It had also sought correction of the import duty structure by raising customs duty from 0 per cent to 10 per cent as earlier and re-imposing 4 per cent special additional duty to boost domestic manufacturing.
Source : economictimes.indiatimes.com
|