Government vide Press Note No.5 (2016 Series) dated 24.06.2016 has notified revised FDI policy in defence sector, according to which FDI upto 49% is allowed under automatic route and beyond 49% through Government route wherever it is likely to result in access to modern technology or for other reasons to be recorded.  Further defence industry is subjected to Industrial License under Industries (Development & Regulation) Act, 1951 and manufacturing of Small Arms and Ammunition under the Arms Act, 1959.

Since the revision of FDI policy in defence sector, beyond 49% under government route, so far, no foreign proposal on technology development has been received.

This information was given by Raksha Rajya Mantri Dr. Subhash Bhamre in a written reply to Shri Ripun Bora in Rajya Sabha today.

NAo/Nampi/DK/HS

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