Industry executives relieved by restrictions in new defence FDI policy

In May, Finance Minister Nirmala Sitharaman, while announcing a Rs 20 trillion stimulus for the coronavirus-hit economy, said a decision had been taken to raise the foreign direct investment (FDI) cap in defence production from the existing 49 per cent (under the automatic route) to 74 per cent.   On Thursday, the Department for Promotion of Industry and Internal Trade (DPIIT) issued Press Note No. 4 (2020 series), which stated: “FDI up to 74 per cent under automatic route shall be permitted for companies seeking new industrial licenses.” The raised FDI cap is not on.....

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