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Govt raises FDI limit in defence production to 74% from 49%

Nirmala Sitharaman city New Delhi India economy Government bill
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NEW DELHI : The government on Saturday announced a slew of measures to promote indigenisation of defence production under its 'Make in India' initiative, including raising the foreign direct investment (FDI) cap from 49% to 74% via the automatic route.

Unveiling the measures, Finance minister Nirmala Sitharaman said the government will also put out a list of weapons and platforms that will only be purchased from domestic industries and not from foreign vendors.

This list would be expanded every year in consultation with the armed forces, she said. A third measure that Sitharaman announced was the corporatization of the ordnance factory boards seen as having potential but seen as producing substandard products including shells for

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