Ban on certain imports, FDI in defence increased from 49% to 74%: Nirmala Sitharaman

Ban on certain imports, FDI in defence increased from 49% to 74%: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Saturday addressed media persons to announce the fourth set of reforms as part of the Union government's "Aatmanirbhar Bharat" initiative to revive the Indian economy and push towards self-dependence.

"Many sectors need policy simplification," Nirmala Sitharaman said.

One of the major reforms announced by the Finance Minister on Saturday aimed at enhancement of self-reliance in defence production. As part of this reform, a list of weapons and platforms will be notified for a ban on import of defence equipment. This list will be revised annually as per India's expanding defence production capacity.

These reforms will also focus on indigenisation of imported spared, Nirmala Sitharaman said. In addition, a separate budget will be provisioned for domestic capital procurement. One of the main objectives of these initiatives is the reduction of India's defence import bill.

"The Foreign Direct Investment (FDI) in defence manufacturing under automatic route is also being raised from 49 per cent to 74 per cent," the Finance Minister said.