New Delhi: Foreign Direct Investment (FDI) worth ₹5,077 crore has been reported by companies operating in the defence sector, the defence ministry said in Lok Sabha on Friday. The data was provided by Minister of State for Defence Ajay Bhatt while replying to a question.
The FDI limit in the defence sector was enhanced in 2020 up to 74% through the automatic route and up to 100% by the government route. The defence industry sector was opened up for private sector participation in 2001.
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.
“So far, ₹5,077 crores worth of FDI has been reported by companies operating in the defence sector,” he added.
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.
To a separate question, he said the defence ministry has signed a contract with the Mazagon Dock Shipbuilders Ltd (MDL) on December 20 for procurement of six next generation offshore patrol vessels for Indian Coast Guard (ICG) at a total cost of ₹1,614 crore.
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