Udayavni Special

DPIIT to soon approach Cabinet for 74 pc FDI through auto route in Defence: Sources


PTI, Jul 13, 2020, 5:15 PM IST

New Delhi: The DPIIT would soon approach the Union Cabinet to seek approval for relaxing norms to allow up to 74 per cent foreign direct investment (FDI) in defence manufacturing under the automatic route, with a view to attract overseas players in the sector, sources said.

They said the Department for Promotion of Industry and Internal Trade (DPIIT) has discussed the matter with the defence ministry.

The decision to permit up to 74 per cent FDI in the defence manufacturing through the automatic route was announced by Finance Minister Nirmala Sitharaman in May while announcing the fourth tranche of the Rs 20 lakh crore stimulus package for the coronavirus-hit economy.

As per the current FDI policy, 100 per cent overseas investments are permitted in the defence industry – 49 per cent under the automatic route, while beyond that the government approval is required.

In July 2018, the government relaxed foreign direct investment norms in the defence sector by allowing up to 49 per cent FDI under the automatic route. The move was aimed at boosting domestic industry as India imports about 70 per cent of its military hardware.

According to the DPIIT data, India’s defence industry has received FDI equity inflows of USD 9.52 million (Rs 56.88 crore) during April 2000 and March 2020.

Under the government route, foreign investors have to take prior approval of the respective ministry/department, while in the automatic route, the investor just has to inform the RBI after the investment is made.

Total FDI into India increased by 18 per cent to USD 73.45 billion in 2019-20.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Bengaluru: Couple cheated of ₹16.7 lakh on pretext of role for son in ads

Delta plus: New Covid variant identified, experts say no cause of concern for now

Mangaluru: Cops arrest two including Omani national for possessing Ganja and MDMA

Arvind Kejriwal inaugurates Gujarat AAP office

Rishi Sunak drawn into in-law Narayana Murthy Amazon tax dispute

Udupi DC clarifies on viral video claiming vaccine gives magnetic power

Shivamogga: 7,300 cusecs water released from Tunga dam



Related Articles More

Journalist’s death in UP: Priyanka says state govt ”nurturing jungle raj”

Facing defeat in next assembly polls, UP BJP govt harassing SP leaders, workers: Akhilesh

Farmers across India suffering due to Centre”s indifference: Mamata

Delta plus: New Covid variant identified, experts say no cause of concern for now

Maha CM lauds transport dept over new system for learning licence, vehicle registration

MUST WATCH

Udayavani News Bulletin 14-06-2021

Udupi DC G Jagadeesh Malalagadde clarification | Magnetic Powers after Receiving Vaccine

Heavy rainfall across Mangaluru

Sanchari Vijay Passes Away | Last Exclusive Interview with Udayavani

OVERFLOODED DAM IN SHIMOGA

Latest Additions

Journalist’s death in UP: Priyanka says state govt ”nurturing jungle raj”

Facing defeat in next assembly polls, UP BJP govt harassing SP leaders, workers: Akhilesh

I will pay for education of children orphaned by Covid-19: R Ashoka

Huge traffic jams in Bengaluru after easing of lockdown restrictions

Farmers across India suffering due to Centre”s indifference: Mamata

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.