FDI limit in defence manufacturing to be raised to 74% under automatic route: FM

New Delhi: The Finance Minister Nirmala Sitharaman, on Saturday, announced that defence manufacturing FDI limit under automatic route has been raised to 74 percent from 49 percent, subject to security clearances.

She also said the government will ban imports of some weapons to promote indigenous production. In a press conference, she added that a list of weapons/platforms will be notified for the import ban.

"'MakeInIndia' for self-reliance in defense production - we will notify a list of weapons/platforms for a ban on import with year-wise timelines. There will be indigenisation of imported spares," she said.

She also added that the government is looking to improve autonomy and accountability in ordnance.

Sitharaman also announced a time-bound defence procurement process and faster decision making. This will be ushered by setting up of a project management unit to support contract management and realistic setting of general staff qualitative requirements of weapons/platforms, she noted. She further added that there will be overhauling trials and testing procedures as well.

The Finance Minister along with MoS Finance Anurag Thakur was addressing the fourth press briefing on the Rs 20 lakh crore economic stimulus announced by Prime Minister Narendra Modi earlier.

Earlier this week, Prime Minister Narendra Modi announced a cumulative package of Rs 20 lakh crore, nearly 10 percent of GDP, to provide relief to various segments of the economy battered by the nationwide lockdown in the wake of the coronavirus pandemic.

While this included March 27 announcement of Rs 1.7 lakh crore package of free foodgrain and cash to poor for three months and RBI's Rs 5.6 lakh crore worth of monetary policy since March, the government in three tranches over the last three days announced a cumulative package of Rs 10.73 lakh crore.