What is the policy framework for foreign pharma companies to manufacture / collaborate with Indian companies?

What is the policy framework for foreign pharma companies to manufacture / collaborate with Indian companies?

Investing guidelines

The Government of India has initiated structural reforms to increase foreign direct investment (FDI) in India. In pharmaceuticals, under the automatic route (without government approval), up to 100% FDI is allowed in greenfield projects and up to 74% FDI in brownfield projects. The investments are also expected in the pharmaceutical clusters (Figure 1).

In these clusters, specific or customised incentives are also provided by the state governments for the promotion of the pharmaceuticals industry. Pharma companies are given various tax and other subventions to set up manufacturing units in the special economic zones (SEZs) or pharmaceutical clusters.

Figure 1. Pharmaceutical clusters of India.

Policy frameworks for the promotion of manufacturing in India