The Draft Defence Production Policy 2018 aims to ‘create an environment that encourages a dynamic, robust and competitive defence industry, as an important part of the Make in India initiative’. Photo: HTNew Delhi: A draft defence production policy put out by the government proposes to increase the foreign direct investment (FDI) cap in niche technology areas to 74% under the automatic route, in a bid to boost local manufacturing and catapult India into the league of countries housing top defence and aerospace industries. At present, the FDI cap for the defence sector is 49% under the automatic route for all categories. The Draft Defence Production Policy 2018, which was made public late on Thursday, aims to “create an environment that encourages a dynamic, robust and competitive defence industry, as an important part of the Make in India initiative”. According to the policy, India hopes to achieve a turnover of Rs1.7 trillion in defence goods and services by 2025.

Source: Mint March 23, 2018 18:56 UTC