Government vide Press Release No. 4 (Series 2020) dated 17.09.2020 liberalized and allowed FDI in an automatic procedure up to 74% and up to 100% through the government route wherever it is likely to lead to access to modern technology. Since the announcement of the revised FDI policy, the total FDI inflow reported till May 2022 is around Rs. 494 million Crores. The Department of Defense Production (DDP) has introduced a number of policy reforms to attract investment:
Higher multipliers assigned in the offset policy to attract investment and technology transfer for defense production. Specific consultations are regularly conducted with Foreign Original Equipment Manufacturers (FOEMs).
Two defensive corridors were established; one in Tamil Nadu and the other in Uttar Pradesh which provide Plug & Play support to industries including FOEM in the corridor. Under the aerospace and defense policy announced by both the state governments, investors are provided tailored incentive packages based on investment, employment and project location, which may include sales GST refunds, stamp duty concessions on land allotment, electricity tax exemption, capital grants . and Subsidy for training for trainers.
Webinars are held with Friendly Foreign Countries (FFC) under the auspices of DDP, Ministry of Defense (MoD) through Indian missions abroad and industry associations with active participation of Indian defense industries. Webinars have taken place with 27 FFCs so far.The Defense Investor Cell has been created to provide all necessary information including solutions to queries related to investment opportunities, procedures and regulatory requirements for investments in the sector. To date, 1,445 inquiries have been resolved by the cell.This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Shri K R Suresh Reddy in Rajya Sabha today.
