Raksha Mantri informed Rajya Sabha about the Relaxation of Foreign Direct Investment (FDI) norms in Defence Sector
- In 2001, the Defence Industry sector, which was hitherto reserved for the public sector, was opened upto 100% for Indian private sector participation, with FDI upto 26% both subject to licensing.
- Further, Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry has allowed FDI under automatic route upto 49% and above 49% through government route wherever it is likely to result in access to modern technology.
- Further, FDI in defence industry sector is subject to industrial license under Industries (Development & Regulation) Act, 1951 and manufacturing of small arms and ammunition under the Arms Act, 1959.
Source : PIB