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The Union Cabinet has rejected a proposal to limit foreign direct investment in domestic manufacturers of “rare and critical” drugs.

The Planning Commission has opposed a proposal by DIPP to limit foreign direct investment in companies making ‘critical drugs’ to 49%.

Non-compete clauses restrict the promoters of target companies from venturing into the same line of business for a certain numbers of years.

Indian regulators' disconnect with global counterparts prevents access to inspection notification or to their findings.

Patients can buy products such as stents, pacemakers and defibrillators priced between Rs 20,000 and Rs 5 lakh.

Several pharma companies are introducing products in this category and predict a significant increase in their profits from this segment.