Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Atmanirbhar Bharat | Government to raise FDI limit in defence manufacturing from 49% to 74%: FM Sitharaman

FM Sitharaman also announced that Ordnance Factories will be corporatised, clarifying that corporatisation is not the same as privatisation.

May 16, 2020 / 07:39 PM IST

While presenting the fourth tranche of measures undertaken in the economic stimulus announced by PM Modi, Union Finance Minister Nirmala Sitharaman said that the FDI limit in defence manufacturing under automatic route will be raised from 49% to 74%.

While listing a slew of measures to make the defence sector more self-reliantSitharaman said that it will lead to better partnership of the Make in India and Atmanirbhar Bharat campaigns.

She said that after consultation with the Department of Military Affairs, a list of weapons will be notified, which will be banned from importing. "These weapons/platforms will be made in India and purchased from India," the finance minster said.

In addition, indigenisation of spare parts will be promoted, which will give an impetus to Indian producers of defence equipment as well as help in reducing the Defence sector's import bill, she said.

FM Sitharaman also announced that Ordnance Factories will be corporatised, clarifying that corporatisation is not the same as privatisation.


COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more

Click here for LIVE updates from FM Nirmala Sitharaman's press briefing

She said that corporatisation of Ordnance Factories is being done so that they can be better managed, and eventually get listed on the stock exchange.

"Ordinary Indian citizens can buy shares in them and through that, we expect that the Ordnance Factory Boards and their processes, decision-making, output, performance, will become transparent for citizens," Sitharaman said.

The finance minister laid out a slew of measures for time-bound procurement of defence equipment and faster decision making, including the setting up of a Project Management Unit.

This included, realistic setting of General Staff Qualitative Requirements (GSQR) of weapons/platforms and overhauling trial and testing procedures.

"Unrealistic qualitative requirements prolong the process of procurement by limiting suppliers and other compliance issues. Hence, these steps are being taken."

FM Nirmala Sitharaman presented structural reforms for right sectors today – coal, minerals, defence production, airspace, airports, MRO, DISCOMS, Space, and atomic energy.

She said that these reforms are "not isolationist", but help in decongesting the sectors, which needed policy simplification, so that necessary boost for growth and employment can be provided.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Moneycontrol News
first published: May 16, 2020 05:00 pm
ISO 27001 - BSI Assurance Mark