Modi Government approves Amend FDI Policy In Defence Sector. Commerce & Industry Minister says Now FDI allows upto 74% via automatic route & beyond 74% to be permitted through govt route. It will also, enhance east of doing business & contribute to growth of investment, income & employment
Towords a stronger & more capable nation modi govt approves amendments in Foreign Direct Investment policy in Defence Section. So check salient features and new licensees, existing licensees. For New Licensees FDI allowed upto 74% through automate route, FDI beyond 74% to be permitted under govt route.
Also, for existing licensees infusion of fresh foreign investment up to 49% can be done by making declaration of change/ transfer within 30 days.
Amend FDI Policy In Defence Salient Features
Salient Features is Foreign investment to be subject to security clearance by minister of home affairs on grounds of National Security. Also, address national security concerns & protect national interest.
Foreign investments in defence sector shall be subject to scrutiny on grounds of National Security.
In line with our collective vision of Aatmanirbhar Bharat, amendments will enhance self-reliance in defence production, while keeping national interests & security paramount. pic.twitter.com/LngBhTO0Zb
— Piyush Goyal (@PiyushGoyal) September 18, 2020
Benefits of Revised FDI Policy In Defence Sector
- Boost national security
- Enhancing defense manufacturing through critical technology
- Self-Sufficiency in product design
- Expanding India’s presence in international supply chains
- Enhance ease of doing business
- Boost growth of Investment , Income & employment