Chennai: India’s defence sector received Rs 1.21 crore foreign direct investment during 2014-18, Parliament was informed.
“FDI equity inflow of Rs 12,146,180 has been reported in the sector namely ‘Defence Industries’ during the period 2014-2018,” Minister of State for Commerce and Industry, C R Chaudhary, said in a written reply to the Rajya Sabha.
“The retaliatory tariffs between the US and China provides a window of opportunity for enhancing India’s exports to China and US, particularly in products in which India is competitive,” he added.
As per the current policy, in defence sector, foreign investment beyond 49 per cent has been permitted through approval route. FDI limit for the defence sector has also been made applicable to manufacturing of small arms and ammunitions covered under Arms Act, 1959.
The defence industries have attracted a meagre $10,000 (about Rs 7 lakh) FDI in 2017-18 and in 2016-17, the industries failed to attract any FDI.