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-reliant, Sitharaman 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.