 "ASSOCHAM lauds government's decision to relax FDI norms in key sectors")
The government's bold decision to increase foreign direct investment (FDI) cap to 1000% will help India in realising the dream of self-reliance in the defence sector which has immense possibilities for attracting investments, setting up manufacturing facilities, obtaining technologies and capabilities and generating high skilled employment, apex industry body ASSOCHAM said on Monday.
"It will also help in bringing investment and advanced technology into defence sector thereby leading to inflow of capital and setting up entities of original equipment manufacturers (OEMs) and their suppliers through transfer of technology," said DS Rawat, secretary general of ASSOCHAM.
"Increasing the FDI limit will also facilitate better compliance of offset obligations," said Rawat.
"Defence production needs long-term and large investment, cutting-edge technology with low economies of scale," he added.
He further lauded the government's decision to increase FDI limit in pharma and aviation sectors.
"FDI will favourably impact the Indian pharma industry by providing access to more capital/funds for investing in R&D, which in turn, leads to creation of more IPR," further said Rawat.