FDI approval granted to 44 companies over joint production of defence items with foreign companies: MoS Defence Naik

Around 44 Indian companies, which comprises of public sector units have been granted approvals for Foreign Direct Investment (FDI) as of now for joint production of defence items with foreign companies, revealed Minister of State for Defence Shripad Naik on Monday.

In a written reply to a question in Rajya Sabha, Naik said, “So far, FDI inflows of about ₹4191 crore have been reported by the companies operating in defence and aerospace sector in the country.”

Currently, 44 companies have been granted the FDI approvals which also extends to DPSUs intended for joint ventures or co-production of other defence items, he said.

He further added the defence items include fixed-wing aircrafts, aero structure components and aerospace, simulator, unmanned aerial systems, optical goods along with optical instruments, radar systems, mortars and tactically protected vehicles.

The Centre had allowed FDI up to 74 per cent for defence production under automatic route as of September 17, 2020. The government also gave FDI permit above 74 per cent under automatic route for instances where it is “likely to result in access to modern technology.”

Prior to September last year, FDI permit in the Defence sector was limited to 49 per cent under automatic route.

• Melukote – Vairamudi Festival – 2022
• Bengaluru metro to function on weekdays, closed on weekends from July 1
• India provides reciprocal exemption of EU Digital COVID Certificate to include Covishield, Covaxin
• PM Modi will address the Digital India beneficiaries at 11 am tomorrow
• Pvt hospitals will obtain Covid vaccine doses via CoWIN starting from July 1