'Make in India': PM Modi government plans to approve 100% FDI in medical devices

NEW DELHI: Looking to boost its 'Make in India' initiative, Prime Minister Narendra Modi-led NDA government is planning to allow Foreign Direct investment ( FDI) in the medical devices, reported ET Now.

According to ET Now, the Cabinet is expected to take up the proposal, which is in the final stages, in the coming weeks.

The government is likely to allow 100 per cent FDI in medical devices through automatic route in brown and as well as green field. "The FDI will be on the automatic approval route, both for brownfield as well as for greenfield. In pharmaceuticals, while 100% FDI through the automatic route is allowed in greenfield (setting up new plants), in brownfield (existing plant), you still need an approval from the government," reported ET Now.

ET Now added that the government maintains that this (FDI in medical devices) will not have an impact on generic drugs. "Medical devices is one field in manufacturing where India lags. India imports more than 60% of medical devices," the channel added.

The move is being seen as government's push to boost the manufacturing sector.

Foreign companies will be allowed to manufacture products in India and also takeover existing plants. Reacting to the news, Bangalore-based Opto Circuits, a medical device company, closed at Rs 23.35, up 9.62 per cent, on the BSE. It touched a high of Rs 23.80 in trade today.