FDI in defence will make India an 'export' hub: Parrikar

Union Minister Manohar Parrikar on Sunday welcomed the decision to notify changes in the Foreign Direct Investment (FDI) policy in the defence sector and said Prime Minister Narendra Modi-led NDA government has taken this step to make India an export hub.

"The government has taken a big step in defence sector by increasing FDI. This has been done so that India becomes 'export hub' over the years," Parrikar said.

"When our government came to power, import was 70 percent. Now, import has come down to below 60 percent. I can assure that by the time this government ends its first term, we will be able to bring down our imports to 40 percent," he added.

Last week, it was announced that 100 percent FDI would be permitted under government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.

The key changes include allowing 100 percent FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India and permitting up to 100 per cent FDI in defence sector.

The other sectors that have benefitted include the broadcasting, pharmaceuticals, civil aviation, single brand retail among others.

The ruling BJP-led NDA Government has brought major FDI policy reforms in a number of sectors like defence, construction development, insurance, pension sector, broadcasting sector, tea, coffee, rubber, among others in last two years.

The FDI inflow into the country has increased at USD 55.46 billion in 2015-16 as against USD 36.04 billion during 2013-14.

This is the highest ever FDI inflow for a particular financial year.