India’s New Investment Policy Allows Foreign Ownership of Devicemakers
Foreign entities may now own up to 100 percent of an established Indian devicemaker without first getting government approval, under revisions to the country’s consolidated foreign direct investment policy.
Previously, companies could invest up to 100 percent in new device ventures, called “greenfield” investments, but were restricted from investing more than 49 percent in existing, or “brownfield,” ventures unless they had government consent.
The policy, issued May 12 by the Department of Industrial Policy and Promotion, incorporates sector-specific changes and updates issued over the past year. The Indian government carved out devices from pharmaceuticals in its FDI policy in December ().