Foreign Direct Investment (FDI) worth Rs 5,077 crore has been reported by companies operating in the defence sector, the government informed the Lok Sabha on Friday.
The data was provided by Minister of State for Defence Ajay Bhatt while replying to a question in the Lower House of Parliament during the ongoing Budget session.
Bhatt said the defence industry sector was opened up in May 2001 for private sector participation.
He said the FDI limit in the defence sector was enhanced in 2020, up to 74 per cent through the automatic route for companies seeking new defence industrial licences, and up to 100 per cent through the government route wherever it was likely to result in access to modern technology.
“So far, Rs 5,077 crore worth of FDI has been reported by companies operating in the defence sector,” the union minister said.
Bhatt said the government also promotes co-development and co-production of niche defence technologies with foreign original equipment manufacturers to encourage FDI in the defence sector.
To a separate question, the minister said the Defence Ministry signed a contract with the Mazagon Dock Shipbuilders Ltd (MDL) on December 20, 2023, for the procurement of six next-generation offshore patrol vessels for the Indian Coast Guard (ICG) at a total cost of Rs 1,614 crore.
(with inputs from PTI)