After the government allowed 100% foreign direct investment (FDI) in single brand retail, civil aviation, defence, airports, pharmaceuticals, food products and animal husbandry, the US India Business Council (USIBC), has said that the widened scope of FDI norms in this sector will provide a fillip to the potential of the US-India bilateral trade.
USIBC President Mukesh Aghi stated that, 'We applaud the liberalisation of FDI to 74 per cent in brownfield investments under the automatic route in the pharmaceutical sector, while also allowing investments beyond 74 per cent and up to 100 per cent through government approval.' He added that, allowing up to 74% FDI in pharmaceutical sector through the automatic rout will encourage investment to move swiftly into India and will further promote and expand healthcare access in India.
These reforms include accelerated infrastructure investment, greater openness to FDI, less red tape, and a revised bankruptcy code. USIBC President said, 'We had stated earlier that $45 billion is only a starting point for American companies to invest in India. With these newly announced reforms, FDIs, technology transfers, and jobs are likely to increase substantially.”