The Central Government, on recommendations of the FIPB, ratified 22 FDI proposals amounting to Rs. 586.137 crore.

The government accorded approval to Shantha Biotechnics' proposal of Rs. 514 crore to increase its foreign equity in brownfield pharmaceutical sector to carry out the activities of research, development, manufacturing and marketing of bio-tech products and other bio-generics. Further, it gave a go-ahead to Mahindra & Mahindra's Rs. 25.99 crore proposal for setting up a JV company to develop, manufacture and provide service support for radar systems and various kinds of defence electronic systems.

Meanwhile, the government deferred 18 proposals, including those of Tara Aerospace Systems, Al Shukur Company for Engineering and Construction and Ordain Health Care Global. It rejected five proposals, including those of Verga Attachments, Quest Global Manufacturing and YourNest Angel Fund Trust.

Apart from this, the FDI inflows in the country registered growth by 74 per cent in February 2012 as against the $1.27 billion (approx Rs. 6,477 crore) of February 2011. The sectors which received large foreign FDI inflows during the 11- month period of 2011-12 are: Services ($5.05 billion), Pharmaceuticals (USD 3.21 billion), Telecom ($1.99 billion), Construction (Rs. 2.52 billion), Power ($1.61 billion) and Metallurgical industries ($1.76 billion). Among the countries, Mauritius remained at the top with $9.42 billion inflows.

On the policy front, the Ministry of Commerce has made the FIPB consent compulsory for all brownfield FDI in Pharma. The government has done away with the automatic route for all brownfield investment in the pharmaceutical sector by mandating the approval of the FIPB. The automatic route is still open for 100 per cent investment in greenfield segment of the sector. Currently, the CCI is not yet ready with all the mandates and hasn't implemented the policies to regulate brownfield FDI in pharma. Hence, the FIPB will continue to examine all the brownfield investments.

Further, the government has updated the procedure to boost foreign investment into the country and also allowed FIIs to invest up to 23 per cent in commodity exchanges without seeking its prior approval.