In news-
The Union government has decided to raise the limit for foreign direct investment (FDI) for defence manufacturing from 49 to 74 per cent under the automatic route.
Speaking to the media here, Finance Minister Nirmala Sitharaman on Saturday said that time-bound defence procurement process and faster decision-making will take place under the new policy.
The mega reform announcements are part of the Rs 20 lakh-crore economic package announced by Prime Minister Narendra Modi on Tuesday.
What is FDI?
A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country..
Impact
-With better technology, MNCs at advantage in bagging contracts
-MNCs to set up base in India; may acquire local firms
-Local companies want more government orders
-India gives $100 bn of defence contracts a year
Source- Wikipedia, The Economic Times.
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