Bengaluru, June 20 (IANS) Relaxing Foreign Direct Investment (FDI) norms in pharmaceutical industry is welcome and a long-awaited reform, said leading Indian biotech company Biocon chairperson Kiran Mazumdar Shaw said on Monday.
“This is a very welcome step by the government, it is a long-awaited reform. And I think the pharma sector is a flagship sector of India. And it is in dire need of capital investment,” Shaw told IANS.
Highlighting that the pharma industry is a capital intensive industry, Shaw said the government move augurs very well because the sector needs to have investment.
“Indian companies are not able to invest themselves, then FDI is very welcome to do this, scaling up.
“I think it is a very welcome move, long awaited, long overdue and I am glad that the government has finally moved,” she said.
According to Shaw, Indian pharmaceutical industry is a global player with nearly 75 to 80 per cent of the industry’s production ending up in exports.
“It is one very very global sector. And it also plays to make in India, innovate in India and market in India. Everything,” she said.
However, Shaw said Biocon would not be requiring any FDI right now as it has already announced its expansion plans but the FDI relaxation would be a boon to many many Indian pharma players.
She said this good news will offset the bad news of Indian central bank Governor Raghuram Rajan declaring his disinterest for an extension.
“The timing couldn’t be better with Raghuram Rajan’s exit because we need some good news to balance the bad news,” added Shaw.