FDI limit in defence manufacturing under automatic route hiked
- The Central government will notify a list of weapons or platforms banned for imports, Sitharaman announced
- The finance minister today also announced reforms in the coal sector
In the fourth tranche of economic stimulus, Finance Minister Nirmala Sitharaman unveiled packages for eight sectors including defence production. To boost 'Make in India' in defence production, the finance minister today said foreign direct investment limit in defence manufacturing under automatic route will be hiked to 74% from 49%. This will be subject to security clearance, the minister added.
The Central government will notify a list of weapons or platforms banned for imports. The number of items in the list will be increased every year. Those items banned for imports can only be purchased from within the country, said Sitharaman.
A separate budget provisioning for domestic capital procurement will be done, she announced. The aim is to reduce the huge defence import bill.
Ordnance Factory Boards will be corporatised for better management and eventually get listed on the stock market, she said. "Corporatisation is not privatisation," Sitharaman clarified while briefing.
She also announced that commercial mining on revenue-sharing basis will be allowed.
On Friday, the finance minister had announced ₹1 lakh crore Agri Infrastructure Fund for farm gate infrastructure for farmers and ₹10,000 crore scheme for the formalisation of Micro Food Enterprises (MFEs) under the ₹20 lakh crore stimulus package.
She had also proposed amendments to the Essential Commodities Act to enable better price realisation for farmers, and said no stock limit should apply to processors or value chain participants.
On Thursday, Sitharaman announced the 'One Nation One Ration Card', free food grain supply to migrants and creation of affordable rental housing complexes (ARHC) in urban areas for migrant workers and poor under the COVID-19 stimulus package.
The announcements by Sitharaman came in a series of press conferences after the Prime Minister Narendra Modi on Tuesday announced ₹20 lakh crore special economic package for the country to become 'self-reliant' and deal with COVID-19 crisis.
Fitch and Standard & Poor's both have India pegged at an investment grade rating that is one notch above a junk rating, while Moody's Investors Service is the only major rating agency that has India's rating two notches above junk.
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First Published:16 May 2020, 04:44 PM IST
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