FDI Limit In Defence Raised To 74% From 49%

The government today raised the FDI limit in defence under the automatic FDI route to 74% from the existing 49%.

The government will also notify a list of weapons and platforms which will not be open for imports. Every year this list will be expanded, the Finance Minister said, while announcing the fourth tranche of her economic package.

"To become self-reliant in defence production, a list of weapons/platforms for ban on import with year wise timelines will be notified. This will help reduce huge defence import bill," the Finance Minister stated.

In addition, corporatisation of ordinance factory boards will also be pursued.