New Delhi: Lauding the government’s decision of raising the Foreign Direct Investment (FDI) in defence sector from 49 per cent to 74 per cent through automatic route, the defence equipment makers on Saturday said that the step would incentivise India's global engagement with more fund inflows and higher competitiveness of domestic industry.
Welcoming the government’s measure, Confederation of Indian Industry (CII) Director General Chandrajit Banerjee said, “Increase of FDI in the sector from 49% to 74% will catalyse overseas investments, while the identification of specific products that can be produced indigenously can encourage domestic production.”
“We believe that the policies announced today would incentivise India's global engagement with more fund inflows and higher competitiveness of domestic industry,” he added.
“You need grit of the Prime Minister Mr Narendra Modi to announce far-reaching reforms like increasing FDI limit in Defence production from 49 per cent to 74 per cent, allowing commercial coal mining for private sector, privatising Discoms in the Union Territories and above all reposing confidence in India's private sector to commercially use the country's space capabilities," the ASSOCHAM Secretary General Deepak Sood said.
“We welcome today’s announcement by @FinMinIndia to increase FDI limits under the automatic route to 74% in defence manufacturing. This will strengthen opportunities for partnerships and defence modernisation. We stay committed to #MakeinIndia,” Boeing India said in a tweet.
“Government's announcement on creating an empowered group of secretaries to fast tract investment clearances, incentive schemes for champion sectors, a project development cell to create a bouquet of investible projects, and upgradation of industrial infrastructure are all very important decisions which will have a strong bearing on India's ability to attract new investments from both domestic and foreign investors,” said Mohammad Athar, Partner, Economic Development and Infrastructure, PwC India.
Jiger Saiya, Partner and Leader, Tax & Regulatory Services, BDO India, said, “Aatmanirbhar Bharat is not an isolated Bharat. FDI reforms in defence manufacturing, coupled with import restrictions, were definitely needed. Mega disinvestment and opening sectors to PPP investments will not only help funding of the stimulus package but will also bring in advanced technology and global best practices to these industries.”