Foreign direct investment (FDI) of up to 74 per cent in the pharmaceutical sector can come via the automatic approval route for brownfield (or expansion) projects.
FDI more than this limit would need government approval, the government said on Monday. Brownfield projects refer to development of existing infrastructure, while greenfield ones refer to new developments. Indian companies already have the freedom to get 100 per cent FDI for greenfield expansion. Till date, if an Indian company wanted to get any FDI for expansion of existing projects, it needed to get an approval from the Foreign Investment Promotion Board (FIPB) of the finance ministry.