FDI in defence manufacturing increases

To revive the ailing economy due to the outbreak of Covid-19, the Government of India has announced a Rs. 20 Lakh Crore stimulus package. The Finance Minister in her announcement as part of the fourth tranche of measures, has outlined structural reforms with focus on critical sectors like civil aviation, power, coal, minerals, defence production, civil aviation, power distribution companies, space sector and atomic energy. The Foreign Direct Investment (FDI) limit in defence manufacturing under automatic route will be raised from 49 per cent to 74 percent.