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India announces Foreign Investment Reform to Reshape Defense Industry
June 20, 2016, 10:27 am

India allows upto 100 percent foreign direct investment in defence sector [Xinhua]

India allows upto 100 percent foreign direct investment in defence sector [Xinhua]

World’s largest importer of arms is now allowing non-Indian companies to own up to 100 per cent of defense firms, a new government statement on Monday said.

Apart from allowing upto 100 per cent foreign direct investment in the defence and civil aviation sectors, the government would also permit 100 per cent FDI in civil aviation, animal husbandry and trading, including through e-commerce.

The Commerce Ministry also announced that the government would allow 100 per cent FDI under automatic route for cable networks, DTH and mobile TV.

The government also allowed foreign companies to own up to 74 per cent in ‘brownfield’ pharmaceuticals projects without prior government approval. India already allows 100 per cent ownership of greenfield pharma businesses.

The government has decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology. Apple and furniture giant IKEA are expected to be the big beneficiaries.

“With these changes, India is now the most open economy in the world for FDI,” said an Indian Commerce Ministry statement.



TBP and Agencies

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