Ties between India and the United States have been strained in recent years because of trade policies and patent disputes.
India has capped the prices of 36 drugs, including those used to treat infections and diabetes, in its latest move to make essential medicines more affordable, a senior official of the country's drug pricing authority told Reuters on Friday.
India had the third-largest number of people living with HIV in the world at the end of 2013 and accounts for about four out of 10 people living with HIV in the Asian region.
The health ministry has formed a committee to consider raising the number of drugs deemed essential and subject to price caps.
Both companies can now complete the deal.
Two individuals filed the petition in the high court of Andhra Pradesh
There are just 1,500 drug inspectors responsible for more than 10,000 factories in India
The recall is the latest in a series of problems to hit Ranbaxy, which has had all its India factories stopped from sending drugs and ingredients to the United States.
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