Welcoming Narendra Modi government’s decision to hike Foreign Direct Investment limit to 74 per cent in the defence sector, French firm Naval Group has said this will support Indian military industry to increase its capabilities and also invite global manufacturers to invest and create manufacturing bases in India.
“We welcome the forward-thinking announcement to increase the foreign direct investment (FDI) limit in defence to 74 per cent under automatic route. This will support the Indian defence industry, as part of economic sustenance post-COVID-19, to increase its capabilities.
This also may attract foreign OEMs to gradually invest in the sector and create technical and manufacturing bases in India,” Naval Group’s Senior Executive Vice President Alain Guillou told ANI in email communication.
He was commenting upon the recent decision by the government to hike FDI in the defence sector along with giving preference to Made in India products in the military sector.
Guillou said the Indian government should now share the fine prints of the new FDI policy with the industry soon along with its integration with the new Defence Procurement Policy-2020 to empower the Make in India policy.