Team Blitz India
NEW DELHI: The Government cleared the first 100 percent foreign direct investment (FDI) in the defence sector as Swedish defence company Saab will set up a rocket manufacturing facility in India in 2024. The FDI proposal, valued under Rs 500 crore, was cleared in October.
Currently, India allows up to 74 percent FDI in the defence sector under the automatic route, with clearances beyond that available on a case-by-case basis.
The nod for 100 percent FDI is a significant development, reflectingthe country’s willingness to attract foreign investment and expertise to boost its defence manufacturing capabilities and technology transfer. Also, the move can potentially lead to increased collaboration and tie-ups with global defence companies, contributing to the modernisation of India’s defence industry.
Saab’s commitment to Make-in-India and its continued partnership with Indian companies such as Munitions India Limited (MIL) and Advanced Weapons and Equipment India Limited (AWEIL) showed its keenness to foster local manufacturing and collaboration.