Invest In India
DEFENCE
- 100% FDI allowed in defence sector, wherein 74% allowed under automatic route and
above 74%, through government route.
- India has the second largest armed forces in the world.
- India has 2 defence corridors:
- Uttar Pradesh- leverages existing manufacturing ecosystem in the state, ideally
suited for economic testing and R&D facilities.
- Tamil Nadu-ensures a mature manufacturing ecosystem for investments and
innovation.
- Some recent announcements in this sector are as follows:
- Government will notify a list of weapons/platforms banned for imports; such
items can only be purchased from India.
- To promote indigenization of imported spares, there will be focus on lowering
defence import bill.
- There’ll be separate budget provisioning for domestic capital procurement.
- Faster decision making in defence procurement.
- Government to corporatize Ordnance Factory Board.
