TMI BlogReview of Foreign Direct Investment (FDI) Policy in Defence SectorX X X X Extracts X X X X X X X X Extracts X X X X ..... Defence Sector 1. Present Position 5.2.6 Defence Sector/Activity % of Equity/ FDI Cap Entry Route 5.2.6.1 Defence Industry subject to Industrial license under the Industries (Development Regulation) Act, 1951 and Manufacturing of small arms and ammunition under the Arms Act, 1959 100% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lines of the M/o Defence. iv. Investee company should be structured to be self-sufficient in areas of product design and development. The investee/joint venture company along with manufacturing facility, should also have maintenance and life cycle support facility of the product being manufactured in India. 2. Revised Position The Government of India has reviewed the extant FDI policy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company not seeking industrial license or which already has Government approval for FDI in Defence, shall require mandatory submission of a declaration with the Ministry of Defence in case change in equity/shareholding pattern or transfer of stake by existing investor to new foreign investor for FDI up to 49%, within 30 days of such change. Proposals for raising FDI beyond 49% from such companies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Security and Government reserves the right to review any foreign investment in the Defence Sector that affects or may affect national security. 3. The above decision will take effect from the date of FEMA notification. (Manmeet Kaur Nanda) Joint Secretary to the Government of India DPIIT File No.: 5(8)/ 2020-FDI Policy dated 17/09/2020 - Circular - Trade Notice - Public No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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