MoS for Defence Ajay Bhatt said that India has received around Rs 494 crore of FDI in the defence sector since revising the policy.
India has received around Rs 494 crore of FDI in the defence sector since revising the policy. (Representative image)
India has received around Rs 494 crore of foreign direct investment (FDI) in the defence sector since revising the policy relating to it in September 2020, the government said in Lok Sabha on Monday.
In the last few years, the government has taken a series of measures to boost domestic defence manufacturing.
Minister of State for Defence Ajay Bhatt said, “In 2020, the government announced increasing the foreign direct investment (FDI) limit from 49 per cent to 74 per cent under the automatic route and up to 100 per cent through the government route in the defence sector”.
Ajay Bhatt said the total FDI inflow into the defence sector was approximately Rs 494 crore since the notification on the revised policy was issued.
In order to promote Make in India’ in the defence sector, the government has issued 584 defence licenses to 358 private companies for setting up of manufacturing units, including 107 licenses for weapon manufacturing. In addition, there are 16 defence public sector companies manufacturing various platforms and equipment for the armed forces.
Talking about defence corridors and research and development, Ajay Bhatt said, “The government is establishing two defence industrial corridors, one each in Uttar Pradesh and Tamil Nadu, opening defence research and development (R&D) for industry, start-ups and academia with 25 per cent of defence R&D budget earmarked to promote development of defence technology in the country”.
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