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The Union Government has approved the amendment in Foreign Direct Investment Policy in Defence Sector.
Commerce and Industry Minister Piyush Goyal has said that for new licensees, FDI is allowed upto 74 per cent through automatic route and beyond 74 per cent to be permitted through government route.
For existing licensees, infusion of fresh foreign investment up to 49 per cent can be done by making declaration of change or transfer within 30 days.
Mr Goyal said, this will enhance ease of doing business and contribute to growth of investment, income and employment. He said, foreign investments in the defence sector shall be subject to scrutiny on grounds of national security.
The Minister said, in line with our collective vision of Atmanirbhar Bharat, these amendments will enhance self-reliance in defence production, while keeping national interests and security paramount.
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