In what reflects a ‘lack of interest’ by foreign companies in the Indian defence manufacturing sector, there has been a mere $5.13 million (Rs 36 crore) foreign direct investment (FDI) in the past 18 years.
As per the Ministry of Defence (MoD) figures submitted in Parliament on Wednesday, so far 41 FDI proposals or joint ventures have been approved to manufacture various defence equipment, both in public and private sectors.
FDI amounting to $5.13 million has been received in the defence industry sector from April 2000 to March 2018. These figures are a mere shadow of the overall FDI inflow into the country, which was $61.96 billion (Rs 4.24 lakh crore) in 2017-18 alone.
In March this year, Parliament was informed that only Rs 1.17 crore FDI was received between April 2014 and December 2017.Touting FDI in defence as a major shift in policy, the (MoD) in 2016 had okayed up to 49 per cent stake for foreign companies partnering Indian companies. Read More