The US-India Business Council yesterday applauded India’s decision to reject a proposal limiting pharmaceutical investment caps to 49 per cent in the brownfield investment sector.

Such a reversal would have sent chilling signals to investors, chased capital to other markets, and prevented domestic companies from growing and collaborating, USIBC said welcoming the decision of the Indian Government in this regard, adding that this reassures investors that India is not going back on reforms.

The decision will encourage competition and investment in the pharmaceutical sector which will continue to create jobs and ensure that patients receive access to important medicines, USIBC said in a statement.

“In our global environment where competition for capital is significant, India’s recent announcement to continue to allow investment in the pharmaceutical sector up to 100 per cent is a powerful signal that its market reforms remain intact and that India’s reform direction is clear,” said USIBC President Ron Somers.

“USIBC continues our commitment to working with the Government of India to deepen the US-India trade relationship and the rejection of such a harmful proposal demonstrates that India remains a top investment destination,” he said.

Formed in 1975, USIBC is the largest bilateral trade association in the US, headquartered in Washington DC, with liaison presence in New York, Silicon Valley, and New Delhi.

It comprises of more than 350 of the top-tier US and Indian companies.

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