FM Nirmala Sitharaman announces hike in FDI limit in defence manufacturing under automatic route to 74 pc from 49 pc

16 May, 2020 | newsx bureau

FM Nirmala Sitharaman National

Finance Minister Nirmala Sitharaman on Saturday announced that Foreign Direct Investment (FDI) limit in defence manufacturing under automatic route will be raised from 49 per cent to 74 per cent.

New Delhi [India], May 16 (ANI): Finance Minister Nirmala Sitharaman on Saturday announced that Foreign Direct Investment (FDI) limit in defence manufacturing under automatic route will be raised from 49 per cent to 74 per cent.

In the fourth tranche of Rs 20 lakh crore stimulus package, she also stated that time-bound defence procurement process and faster decision making will be ushered in by setting up of a Project Management Unit (PMU) to support contract management, a realistic setting of General Staff Qualitative Requirements (GSQRs) of weapons/platforms and overhauling trail and testing procedures.

Sitharaman, who was addressing media persons along with Minister of State for Finance Anurag Thakur and other senior officials of the ministry, said that a list of weapons/platforms for a ban on import with year-wise timelines will be notified and there will be indigenisation of imported spares.

Finance Minister Nirmala Sitharaman said on Saturday the government will provide a level playing field for private companies in satellites, launches, and space-based services. In the field of atomic energy, she said a research reactor will be established in the public-private partnership (PPP) model for the production of medical isotopes. This will enable the use of irradiation technology for food preservation to complement agricultural reforms and assist farmers.(ANI)