The government’s decision to ease FDI norms in the defence sector will push self-reliance in production and keep national interests and security paramount, Commerce and Industry Minister Piyush Goyal said on Friday. He said that foreign investments in the defence sector would be subject to scrutiny on grounds of national security.
The government has permitted 74 per cent foreign direct investment (FDI) under automatic route in the sector with certain conditions. “Now, FDI is allowed up to 74 per cent through automatic route and beyond 74 per cent to be permitted through government (approval) route.
This will enhance ease of doing business and contribute to growth of investment, income and employment. In line with our collective vision of Aatmanirbhar Bharat, amendments will enhance self-reliance in defence production, while keeping national interests and security paramount,” he said in a tweet.