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ARTICLE · 13 APRIL 2017

Defence FDI: The Truth Behind The Numbers

Shardul Amarchand Mangaldas & Co
Shardul Amarchand Mangaldas & Co
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Shardul Amarchand Mangaldas & Co

Shardul Amarchand Mangaldas & Co

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On March 24, 2017, while responding to a question in Parliament, the Minister of State for Defence informed us that the FDI equity inflow for April 2013-December 2016 in the defence sector was 1 million USD.

IndiaGovernment, Public Sector
Shardul Amarchand Mangaldas & Co
Shardul Amarchand Mangaldas & Co
Kanishk
Kanishk
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On March 24, 2017, while responding to a question in Parliament, the Minister of State for Defence informed us that the FDI equity inflow for April 2013-December 2016 in the defence sector was 1 million USD. As expected, this response elicited dismay from the national media, which covered this story alluding to policy failures of the current regime.

Ever since the current government took over at the Centre, it has consistently touted the Defence Sector as a special focus area. From Make in India to modernisation plans worth billions of dollars, the Defence sector has consistently occupied pride of place. The much publicised reform brought by Press Note 12 of 2015, which permitted foreign investment up to 49% under automatic route and up to 100% under government approval route in the Defence sector, was one such bold move by the government, which truly reflected what the industry had been asking for many years.

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