Defence manufacturing FDI limit under automatic route raised to 74% from 49%

[Laozi]

Defence manufacturing FDI limit under automatic route raised to 74% from 49%
Updated : May 16, 2020 05:04 PM IST

FM announced that defence manufacturing FDI limit has been raised to 74 percent from 49 percent, subject to security clearances.
FM added that the government is looking to improve autonomy and accountability in ordnance.

CNBCTV18.COM
The Finance Minister Nirmala Sitharaman, on Saturday, announced that defence manufacturing FDI limit under automatic route has been raised to 74 percent from 49 percent, subject to security clearances.

She also said the government will ban imports of some weapons to promote indigenous production. In a press conference, she added that a list of weapons/platforms will be notified for the import ban.

"'MakeInIndia' for self-reliance in defense production - we will notify a list of weapons/platforms for a ban on import with year-wise timelines. There will be indigenisation of imported spares," she said.
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She also added that the government is looking to improve autonomy and accountability in ordnance.

Sitharaman also announced a time-bound defence procurement process and faster decision making. This will be ushered by setting up of a project management unit to support contract management and realistic setting of general staff qualitative requirements of weapons/platforms, she noted. She further added that there will be overhauling trials and testing procedures as well.

The Finance Minister along with MoS Finance Anurag Thakur was addressing the fourth press briefing on the Rs 20 lakh crore economic stimulus announced by Prime Minister Narendra Modi earlier.

READ MORE: Nirmala Sitharaman announces steps to enhance private investments in mineral sector

Earlier this week, Prime Minister Narendra Modi announced a cumulative package of Rs 20 lakh crore, nearly 10 percent of GDP, to provide relief to various segments of the economy battered by the nationwide lockdown in the wake of the coronavirus pandemic.

While this included March 27 announcement of Rs 1.7 lakh crore package of free foodgrain and cash to poor for three months and RBI's Rs 5.6 lakh crore worth of monetary policy since March, the government in three tranches over the last three days announced a cumulative package of Rs 10.73 lakh crore.


https://www.cnbctv18.com/politics/d...omatic-route-raised-to-74-from-49-5938461.htm

 

[Laozi]

The Biggest GAMECHANGER Policy decision of Modi so far.

It will have huge implications in very near future.

Indian Defence Manufacturing will enter into its Golden Era

 

[Secular]

I don't know what happened to AATAMNIRBHARTA??
74% foreign investment and only 26% for indian.
Anyone who can explain benifit of this?
Thanks.

 

[lightoftruth]

Govt needs inflow,

Private sector will be opened up in various sectors.

 

[Laozi]

I don't know what happened to AATAMNIRBHARTA??
74% foreign investment and only 26% for indian.
Anyone who can explain benifit of this?
Thanks.

Dassault, Lockheed Martin, General Electric and other sophisticated high-tech giants might start small manufacturing units in India if they have a 74% control of their company.

These defence companies will never start a company in a foreign land where they are a minority owners of their units.

 

[Arulmozhi Varman]

Dassault, Lockheed Martin, General Electric and other sophisticated high-tech giants might start small manufacturing units in India if they have a 74% control of their company.

These defence companies will never start a company in a foreign land where they are a minority owners of their units.

And do what? Screwdriver? The reason for having 49% was to have local companies majority that they can follow the law of the land in case of wars. Now we will be called to WTO in case of crises.

The good thing is noone will invest even now with Wuhan viruses stuff going on. U better bring the tech in Indian hands or not at all.

 

[Soumitra]

And do what? Screwdriver? The reason for having 49% was to have local companies majority that they can follow the law of the land in case of wars. Now we will be called to WTO in case of crises.

The good thing is noone will invest even now with Wuhan viruses stuff going on. U better bring the tech in Indian hands or not at all.

Our company is one of the private companies in defense sector. Defense doesn't just mean Tanks and Helicopters and Planes. It also means components, spare parts, communication systems etc.

This is the official statement from our company

"We are pleased with the measures announced by the Finance Minister today to provide a boost to domestic manufacturing in the defence sector, which is in line with the country's Make in India mission. By raising the FDI limit in defence manufacturing under the automatic route from 49% to 74% and by putting a ban to the import of certain defence equipment, today's announcements have provided a boost to Indian companies in providing Indigenously designed and manufactured solutions. Another important step in the form of allocating a separate budget for defence procurement will see new investments in the sector and help high-tech companies such as Saankhya Labs an opportunity to develop next-gen Indigenously designed, developed and manufactured (IDDM) communications solutions for the armed forces. Additionally, with the Government taking measures towards the indiginezation of imported spares, we will see new technology-driven startups emerge in the defence sector and this will provide a a major fillip to the sector."

 

[Laozi]

And do what? Screwdriver? The reason for having 49% was to have local companies majority that they can follow the law of the land in case of wars. Now we will be called to WTO in case of crises.

The good thing is noone will invest even now with Wuhan viruses stuff going on. U better bring the tech in Indian hands or not at all.

You have raised four different issues in two sentences.

No big or small foreign defence company has invested in India in last 75 years therefore what is there to lose.

Relax, let any such big shot company make plan to invest in India then you can come up with this opposition like narratives.

 

[Secular]

Do you know tongbo ceo write open latter to PMO about lack of interest shown by army and also bills not clear by army.
Sad thing.