FDI In Defence

Foreign Direct Investment (FDI) worth Rs 5077 crore has been reported by companies operating in the defence sector, the defence ministry said in Lok Sabha on Friday. The data was provided by Minister of State for Defence Ajay Bhatt while replying to a question. The defence industry sector was opened up in May 2001 for private sector participation, he said. "The FDI limit in the defence sector was enhanced in 2020 up to 74 per cent through the automatic route for companies seeking new defence industrial licence and up to 100 per cent by the government route wherever it is likely to result in access to modern technology," Bhatt said. "So far, Rs 5077 crores worth of FDI has been reported by companies operating in the defence sector," he added. The minister said the government also promotes co-development and co-production of niche defence technologies with foreign original equipment manufacturers to encourage FDI in the defence sector. To a separate question, he said the defence ..

To a separate question, Minister of State for Defence Ajay Bhatt said the "term 'Matryr' is not used in Indian Armed Forces"

Minister of State for Defence Shripad Naik made the announcement on Monday

Here's a selection of Business Standard opinion pieces for the day

Direct procurement from abroad should be made conditional on setting up manufacturing facilities in India

Some Congress leaders demanded that the govt reverse its decisions on proposed privatisation of ordnance factories and FDI policy changes in defence, saying they compromise national security interests

Raised FDI cap is not on offer to companies that already have government approval for 49 per cent FDI in a joint venture.

The government's decision to ease FDI norms in the defence sector will push self-reliance in production and keep national interests and security paramount, Piyush Goyal said

The Central government has increased the foreign direct investment (FDI) limit in the defence sector from 49 to 74 per cent under automatic route and beyond 74 per cent through the government route."Welcome Prime Minister Narendra Modi ji's decision to amend FDI policy in Defence Sector. Now, FDI is allowed upto 74% through automatic route & beyond 74% to be permitted through Govt route. This will enhance Ease of Doing Business and contribute to growth of investment, income and employment," Minister of Commerce and Industry Piyush Goyal tweeted.Making the announcement on Twitter on Friday, Goyal added that foreign investments in the defence sector will be subject to scrutiny on grounds of national security.According to an order issued by the Ministry of Commerce and Industry, the FDI limited through government route has been increased to beyond 74 per cent "wherever it is likely to result in access to modern technology or for other reasons to be recorded"."Foreign investments in

Items banned for imports can only be purchased from within the country, Sitharaman said

The local companies will be at a disadvantage if they don't' get orders from the government

Measures include negative import list, corporatisation of ordnance factories

In 2018-19, FDI in the sector was aggregated at $2.18 million, according to the data

In 2014-15, 2015-16, and 2017-18, the sector attracted FDI worth $0.08 million, $0.10 million and $0.01 million, respectively, according to data given by Minister Piyush Goyal

Jaitley said suddenly a lot of joint ventures are coming up for investment in the defence sector.

Govt may allow 100% FDI via automatic route for production of tanks, armoured vehicles, among others

Said the PM was working under pressure from the US

Congress also said that FDI reforms were a 'panic reaction' in wake of Raghuram Rajan's decision to exit RBI

The current FDI policy, promulgated in November 2015, permits 49 per cent foreign investment through the automatic route