74% FDI In Defence Via Automatic Route, With National Security Rider
Defence FDI: The decision to raise the FDI limit through the automatic route in defence manufacturing to 74 per cent was announced by Finance Minister
74% FDI In Defence Via Automatic Route, With National Security Rider
New Delhi: Foreign firms can directly invest up to 74 per cent in the defence sector, the government said today, raising the Foreign Direct Investment (FDI) cap from 49 per cent through the automatic route. However, foreign investments will be subject to scrutiny on grounds of national security and the government will have the right to review any investment that has a bearing on the country's security, said a statement on Thursday. Currently, 100 per cent overseas investments are permitted in the defence industry -- 49 per cent is allowed under the automatic route but beyond that, government approval is required. But now, "FDI up to 74 per cent under automatic route shall be permitted for companies seeking new industrial licences", says the Department for Promotion of Industry and Internal Trade. Read | 9 Al-Qaeda Terrorists Arrested In Multiple Raids By NIA In Kerala, Bengal Fresh foreign investment of up to 49 per cent in a company not seeking a new industrial licence or …
