New Delhi- Union Finance Minister, Nirmala Sitharaman announced the decision to hike the defence sector FDI has been raised from 49% to 74%. On Saturday, this decision was announced, which was then welcomed by Indian Defence Staff Chief, General Bipin Rawat. Hence, ‘FDI will facilitate technology transfers and defence corridors taking shape in right earnest’, ensured General Rawat. Chief of Indian Defence Staff, General Bipin Rawat welcomed this decision by saying that this will bring in the technology advancements in the defence sector.
Over the last few years, the Indian government is developing various programmes for producing the Defence Weapons, under the Make In India initiative. However, the concern expressed was the nation will not be able to procure the advance modern weapons. Against the background, by announcing the decision to hike the FDI from 49% to 74%, India has opened an attractive corridor for foreign nations to invest. The response of Indian Defence Staff Chief only denotes that this decision will hugely benefit India.
Huge Defence Corridor Plants are being erected in Uttar Pradesh and Tamil Nadu to produce defence accessories and armament. Moreover, due to this appealing investment proposal, more leading defence armour producers from around the world will invest in our nation and India will see more defence corridor plants. Many of the prominent foreign companies have shown interest in this Indian scheme. Thus, this decision taken by the central government will show significant effects in future.