Rs 5K crore FDI reported by defence sector firms: Government

New Delhi, February 9

Foreign Direct Investment (FDI) worth Rs 5,077 crore has been reported by companies operating in the defence sector, the defence ministry said in the Lok Sabha on Friday. The data was provided by Minister of State for Defence Ajay Bhatt while replying to a question. The defence industry sector was opened up in May 2001 for private sector participation, he said.

“The FDI limit in the defence sector was enhanced in 2020 up to 74 per cent through the automatic route for companies seeking new defence industrial licence and up to 100 per cent by the government route wherever it is likely to result in access to modern technology,” Bhatt said.

Promoting co-production

• The government is also promoting co-development and co-production of niche defence technologies with foreign original equipment manufacturers to encourage FDI in the defence sector, Minister of State for Defence Ajay Bhatt informs Lok Sabha.

The minister said the government also promotes co-development and co-production of niche defence technologies with foreign original equipment manufacturers to encourage FDI in the defence sector.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said India continues to be a preferred FDI destination despite soaring global interest rates. The minister was speaking at the Global Business Summit 2024 in New Delhi.

He said that interest rates rose worldwide, including in the US, and that led to the flow of capital back in the developed nations, but the strength of demand in India, the strength of opportunities that people saw in India, ensured that we did not see the drastic fall that many of our other peer countries (witnessed),” Goyal said. He added that India continued to see traction for investments and the country “continues to see money coming in”.— PTI

India preferred destination: Goyal

Commerce and Industry Minister Piyush Goyal said India continued to be a preferred FDI destination despite soaring global interest rates. The minister was speaking at the Global Business Summit 2024 in New Delhi.