Rs 5077 crore FDI Reported by Companies Operating in Defence Sector: Govt

Defense News ,India :- New Delhi, Minister of State for Defence, Ajay Bhatt, revealed on Friday that companies operating in the defence sector have attracted Foreign Direct Investment (FDI) worth Rs 5,077 crore. Responding to a query in Lok Sabha, he provided insights into the surge in FDI, highlighting the growth of the defence industry since its opening to private sector participation in May 2001.

Bhatt emphasized the significant policy shift in 2020, which elevated the FDI limit in the defence sector to 74% through the automatic route for companies seeking new defence industrial licenses. He noted that the limit could be extended up to 100% via the government route, especially when it facilitates access to modern technology. The reported FDI of Rs 5,077 crores underscores the positive response from companies operating in the defence sector.

The minister elaborated on the government's commitment to promoting co-development and co-production of niche defence technologies in collaboration with foreign original equipment manufacturers. This strategic approach aims to encourage further FDI in the defence sector, fostering technological advancements and international partnerships.

In addition to the FDI announcement, Bhatt informed the Lok Sabha about a recent contract signed by the defence ministry with Mazagon Dock Shipbuilders Ltd (MDL). The contract, inked on December 20, entails the procurement of six next-generation offshore patrol vessels for the Indian Coast Guard (ICG), with a total investment of Rs 1,614 crore. This contract signifies the government's ongoing efforts to strengthen maritime capabilities and enhance security along India's coastlines.