FDI inflow of Rs. 1834 cr in defence sector till Dec 2019: Centre tell Lok Sabha

New Delhi [India], Mar 4 (ANI): FDI inflows of over Rs. 1,834 crores in the defence sector have been reported under both government and automatic route till December last year, Centre informed Lok Sabha on Wednesday.
Minister of State for Defence, Shripad Naik also said that by allowing higher FDI in the defence sector, the global companies having high-end technologies can be encouraged to set up their manufacturing base in India in collaboration with Indian companies,
"In May, 2001, the Defence Industry sector, which was hitherto reserved for the public sector, was opened up to 100 per cent for Indian private sector participation, with Foreign Direct Investment (FDI) up to 26 per cent both subject to licensing," Shripad Naik said in a written reply to Lok Sabha on Wednesday.
"Further, Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry vide Press Note No. 5 (2016 Series) has allowed FDI under automatic route upto 49 per cent and above 49 per cent through government route wherever it is likely to result in access to modern technology or for other reasons to be recorded," the reply said.
"As per the data furnished by 79 companies operating in Defence and Aerospace sector, so far, FDI inflows of over Rs. 1834 crores have been reported under both government and automatic route till December, 2019.
"By allowing higher FDI in the Defence sector, the global companies having high-end technologies can be encouraged to set up their manufacturing base in India in collaboration with Indian companies, thereby resulting in creation of employment opportunities, saving of foreign exchange and increasing indigenisation," the Minister said.
The Minister stated that defence industrial licenses are issued for various defence items like tanks and other ground vehicles, defence aircraft, spacecraft and parts thereof, Unmanned Aerial Vehicles (UAVs), missiles designed for military purposes, warships of all kinds, high-velocity kinetic energy weapon systems and related equipment, electronic equipments for military application, armoured or protective equipment, imaging or countermeasure equipment and other miscellaneous equipments. (ANI)