|
FDI equity inflow into pharma sector grows to $1.27 billion in H1 FY26
|
|
Gireesh Babu, New Delhi
January 28 , 2026
|
|
|
The Foreign Direct Investment (FDI) equity inflow into the drugs and pharmaceuticals sector in the country has reported over two-fold growth during the first half of the fiscal year 2025-26, as compared to the same period, last year.
The April to September quarter of FY 2025-26 witnessed the FDI equity inflow into the sector at around $1.27 billion as compared to $519.9 million registered in the same period of FY25, according to official data.
However, significant growth out of the H1's growth was reported in the first quarter of the fiscal, from April to June, 2025, at $1.2 billion, while the second quarter of the fiscal year, from July to September, reported a meagre $78 million FDI. This is a 72% decline compared to the $283.62 million inflow reported in the same period of FY 25.
The cumulative FDI equity inflow into the sector from April, 2000 to September, 2025 stood at $24.69 billion, which is Rs. 1,53,328 crore in terms of Indian currency.
In Rupee terms, the growth during the first six months ended September, 2025 was Rs. 10,948 crore, as compared to Rs. 4,349 crore reported in the same period of last year, according to the quarterly fact sheet on FDI inflow from the ministry of commerce and industry.
The multifold growth for the sector has been reported during the six months of FY26 comes when the overall FDI equity inflow during the period registered a 18% growth at $35.18 billion (Rs. 3,03,402 crore) as compared to $29.79 billion (Rs. 2,49,032 crore) in the same period of last year.
Out of the cumulative FDI equity inflow from April, 2000 to September, 2025, of $764.18 billion, services sector accounted to over 16.22 per cent of the total FDI equity inflow in US Dollar terms, followed by computers and software & hardware (15.67%), trading (6.59%), telecommunications (5.26%), automobile industry (5.16%), construction (infrastructure) activities (4.95%), construction development including townships, housing, built up infrastructure and construction development projects (3.58%), drugs and pharmaceuticals (3.23%), non-conventional energy (3.13%), chemicals (other than fertilizers) (3.11%), and between April, 2000 to September, 2024.
The foreign equity infusion into the Indian pharma sector has hit a five year-low at $891 million in FY25, around 16% decline from the $1.06 billion reported during the previous fiscal year.
This was a decline for the second consecutive year, with the fund infusion coming down 48.3% to $1.06 billion in the year 2023-24, as compared to $2.06 billion in FY 2022-23. The foreign fund infusion in FY 2022-23 was a 46% growth from $1.41 billion in 2021-22, according to official data.
In FY25, for the first time in the last five years, the inflow has declined to below $1 billion. In rupee terms, the FDI inflow during 2024-25 was at Rs. 7,500 crore, as compared to Rs. 8,844 crore during the previous fiscal year, reporting a 15.2% decline.
Foreign investments in pharmaceuticals in greenfield projects are allowed up to 100 per cent under the automatic route and for brownfield pharmaceutical projects, foreign investment beyond 74 per cent to up to 100 per cent, government approval is required.
After the abolition of Foreign Investment Promotion Board (FIPB) in May 2017, the Department of Pharmaceutical (DoP) has been assigned the role to consider the foreign investment proposals under the government approval route.
Apart from this, the department considers all FDI proposals of pharmaceutical sector and medical devices sector, according to an announcement in April 17, 2020, wherein investors/ultimate beneficiaries of the proposals are from the countries sharing land border with India.
|
|
|
|
|
|
|
|
TOPICS
|
The Food and Drug Administration (FDA), Maharashtra, has issued a public advisory urging citizens to report any misleadi ...
|
|
|
|
|