Govt needs to let go of the 1970s mindset on FDI

The commerce and industry ministry’s opposition to foreign firms taking over existing Indian pharmaceuticals firms gets more curious by the day since, in an FDI-starved nation, you’d think getting precious foreign exchange would be a top priority—last week, the FIPB yet again deferred the $1.6 billion buyout of Strides Arcolab’s injectables business by US major Mylan. Initially, the commerce and industry ministry’s opposition was based on the argument that, when foreign firms take over Indian ones, production of critical drugs can be reduced and their prices raised.

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