The Indian government has decided to allow up to 74% Foreign Direct Investment (FDI) in the defense manufacturing sector through the automatic route. Prime Minister Narendra Modi made this announcement on Thursday, August 27, while addressing the ‘Atmanirbhar Bharat Defence Industry Outreach Webinar’ through video conference.
Narendra Modi said that the government is putting its honest efforts to boost defence manufacturing in India. He also said that the government is promoting new technologies in defense manufacturing and is giving big roles to the private players in the defense sector.
PM Modi informed that the government has put an embargo on the import on certain defense equipment. This is done to boost the indigenous manufacturing infrastructure. Modi said that India’s resolve for ‘Aatmanirbhar Bharat’ is not inward-looking, but for making India capable and boosting global peace and economy.
“Our work for ‘Aatmanirbhar Bharat’ will also boost India’s ability to be the net security provider in the Indian Ocean,” said PM Modi. PM also added that the Centre’s “effort has been to reduce red-tapism and to roll out the red carpet for the industry”.
Prime Minister Narendra Modi said that the government wants to promote the development of new technologies in India itself. He said that India is capable enough to become self-dependent in defense manufacturing.