The Reserve Bank today notified the changes in the FDI policy allowing 100 per cent foreign direct investment in medical devices segment.
The Reserve Bank today notified the changes in the FDI policy allowing 100 per cent foreign direct investment in medical devices segment.
"The extant FDI policy for pharmaceutical sector has since been reviewed and it has now been decided with immediate effect that there would be a special carve out for medical devices which was earlier given the same treatment as pharmaceutical sector," the RBI said.
Earlier, the Union Cabinet had liberalised the FDI policy for the cash-starved medical devices sector.
As per the decision, FDI up to 100 per cent through automatic route has been permitted for manufacturing of medical devices in the country. Later, the Department of Industrial Policy and Promotion (DIPP) too had notified the Cabinet's decision.
Easing of norms for medical devices industry by creating special carve out in the FDI policy on pharma sector is expected to encourage FDI inflows in this area.
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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