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Govt considers more FDI reforms to attract Rs 35k cr for defence

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

IANS  |  New Delhi 

Photo: Shutterstock
Photo: Shutterstock

A more liberal foreign direct investment (FDI) policy is currently under consideration for the defence sector, sources said.

The aim is to attract Rs 35,000 crore investment in the next five years, give a flip to and create more jobs.

Under the new norms, the government is likely to allow 100 per cent under the automatic route for the production in India of tanks, armoured vehicles and military transport aircraft.

Seventy-six per cent under the automatic route is proposed for fighter aircraft and helicopters

Fifty-one percent under the automatic route is proposed for submarines and warships.

All categories for which FDI under the automatic route is less than 100 per cent, this level will be allowed on a case-to-case basis where high technology is involved.

The policy is aimed at drastically cutting down defence imports from the current 70 per cent.

Extensive discussions for further liberalising the for the are currently on between NITI Ayog, the Defence Ministry and the (DIPP).

According to the sources, the new norms will soon be the reality.

First Published: Mon, July 24 2017. 15:43 IST