- The list of weapons and platforms will be notified and their imports will be banned.
- Ordinance factory board will be incorporated to bring transparency and better performance
May 16, 2020, 07:37 PM IST
new Delhi. Finance Minister Nirmala Sitharaman today announced the fourth backup of the Rs 20 lakh crore 'Self-Reliant India Campaign' package to overcome the crisis of Corona epidemic. It also stressed on making the country self-reliant in defense production. At the same time, it was also announced to increase the limit of automatic foreign direct investment (FDI) from 49 percent to 74 percent in the field of defense manufacturing.
What was announced?
The Finance Minister said that to make self-reliance in defense products, it is very important to emphasize on Make in India. In the last 3 years, steps have been taken in this direction in many areas in India. The list of weapons and platforms will be notified and their imports will be banned.
Who will benefit?
Ordinance factory board will be incorporated. In such a situation, large private companies of India like Reliance, Tata or others related to import can get benefit of this. The army will benefit from getting good weapons. At the same time, the country will benefit from our dependence on countries around the world.
What will be the benefit?
There will be a huge cut in the defense import bill and the direct benefit of which will be given to the Indian companies that supply the Indian military. There will be employment opportunities inside India. We have to import weapons and their parts, manufacturing will be done here to reduce it. In such a situation, the companies associated with them will benefit.
When will you get the benefit?
The government has not clarified anything about this yet. Guidelines related to this will be issued.
Foreign direct investment (FDI) limit increased
It was also said to increase the limit of automatic foreign direct investment (FDI) in defense manufacturing from 49 percent to 74 percent. That is, the limit of FDI route will be increased. And quick decision making will also be done for the time bond differential performance process is ours. A project management unit will be formed for contract management.
What is Foreign Direct Investment (FDI)?
Investment made by a company of one country in another country is called Foreign Direct Investment (FDI). With such investment, the investors get some share in the management of the company in the other country in which its money is invested. To get FDI status for an investment, at least the foreign investor has to buy 10% shares in the company. Also, he has to get a franchise in a company with investment.