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Home > Business > FDI medical devices policy to come into effect from Jan 21

FDI medical devices policy to come into effect from Jan 21

Afternoon Voice by Afternoon Voice
January 6, 2015
in Business
1 min read
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The government decision to permit 100 per cent foreign direct investment in medical devices will take effect from January 21, the Commerce and Industry Ministry said on Tuesday.

The Union Cabinet last month approved liberalising FDI policy for the cash starved medical devices sector.

As per the decision, FDI up to 100 percent through automatic route has been permitted for manufacturing of medical devices in the country.

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“The decision will take effect from January 21, 2015,” the ministry said in a press note.

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.

The condition of ‘non-compete clause’ would also not be applicable to greenfield (new project) or brownfield projects (existing units) of this industry.

Medical devices include any instrument, apparatus, appliance, implant, material or other article, whether used alone or in combination, including the software intended by its manufacturer to be used specially for human beings or animals for one or more of the specific purposes.

It also includes a device which is a reagent, calibrator, control material, kit, equipment or system whether used alone or in combination thereof intended to be used for examination and providing information for medical or diagnostic purposes.

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