India’s defence industry received foreign direct investment (FDI) of a meagre $2.18 million during 2018-19, the Parliament was informed on Wednesday. In 2014-15, 2015-16, and 2017-18, the sector attracted FDI worth $0.08 million, $0.10 million and $0.01 million, respectively, according to data given by Commerce and Industry Minister Piyush Goyal in a written reply in the Lok Sabha.
In 2016-17, the industry had failed to attract overseas investments. The other sectors which received nil inflows during the last fiscal include photographic raw film and paper, and coir. As per the current policy, foreign investment beyond 49 per cent is permitted through approval route in defence sector.
The FDI limit for defence sector has also been made applicable to manufacturing of small arms and ammunitions covered under Arms Act, 1959. Read More