India's defence sector received Rs 1.21 crore foreign direct investment during 2014-18, Parliament was informed Wednesday.
India’s defence sector received Rs 1.21 crore foreign direct investment during 2014-18, Parliament was informed Wednesday. “FDI equity inflow of Rs 12,146,180 has been reported in the sector namely ‘Defence Industries’ during the period 2014-2018,” Minister of State for Commerce and Industry C R Chaudhary said in a written reply to the Rajya Sabha. As per the current policy, in defence sector, foreign investment beyond 49 per cent has been permitted through approval route.
FDI limit for the defence sector has also been made applicable to manufacturing of small arms and ammunitions covered under Arms Act, 1959. In 2013-14, 2014-15 and 2015-16, defence industries had received USD 0.82 million, USD 0.08 million, and USD 0.10 million foreign inflows, respectively. In 2016-17, the industries had failed to attract any foreign direct investments.
The defence industries have attracted a meagre USD 10,000 (about Rs 7 lakh) FDI in 2017-18. Replying to a separate question, the minister said the current trade war between the US and China is likely to have its impact on the imports and exports of other countries, including India and may bring about a shift in their bilateral trading patterns and displacement of their bilaterally traded commodities to other countries.
“The retaliatory tariffs between the US and China provides a window of opportunity for enhancing India’s exports to China and US, particularly in products in which India is competitive,” he added. Imposition of high duties on certain steel and aluminium products by the US has triggered a trade war kind of situation.