Centre has decided to permit up to 74% FDI in defence manufacturing through automatic route: PM Narendra Modi

Prime Minister Narendra Modi on Thursday asserted that the Centre has decided to permit up to 74 per cent FDI in the defence manufacturing through automatic route. Addressing the 'Atmanirbhar Bharat Defence Industry Outreach Webinar' through video conference, PM Modi said that efforts are being made to boost defence production, develop new technology and give a big role to private players in the defence sector.

PM Modi also said that an embargo has been imposed on the import on certain defence equipment with an aim to boost the Indian defence industry. The PM highlighted that India's resolve for 'Aatmanirbhar Bharat' is "not inward-looking, but for making India capable and boosting global peace and economy".

"Our work for 'Aatmanirbhar Bharat' will also boost India's ability to be the net security provider in the Indian Ocean," said PM Modi. He added that the Centre's "effort has been to reduce red-tapism and to roll out the red carpet for the industry".

"For many years, India has been one of the biggest defence importers. When India got independence, it had the great capability in defence manufacturing and an ecosystem of defence manufacturing established over 100 years. Unfortunately, this subject couldn't get requisite attention," added PM Modi.

"We also saw labour reforms recently and reform exercise is not going to stop now," said PM Modi. He said, "Rajnath Singh ji is in mission mode for this work and his tireless efforts will give very good results."

"We want new technologies to be developed in India itself. There should be a level playing field. A new mindset has been born. For a long time, the decision on CDS was not made but it has been made now. The formation of CDS has coordinated the defence procurement of the three forces," said the PM.