India raises the cap on foreign investment in defense, but will strengthen security review

category:Military
 India raises the cap on foreign investment in defense, but will strengthen security review


Indian Air Force C-130J transport aircraft

Ma Yan, a global network reporter, reported on the website of Janes Defense Weekly on September 18, India has officially raised the upper limit of foreign investment in its defense field. In addition, the new foreign direct investment regulations also introduced national security provisions to strengthen the review of relevant investment proposals.

A press release issued by the Ministry of industry and internal trade promotion on September 17 said it had raised the restrictions on foreign direct investment in defense from 49% of the equity of local companies to 74%. This restriction applies to investors under the automatic channel, which means government approval is not required.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u5811557,container:ssp_ 5811557, async:true }However, the Ministry of industry and internal trade promotion also lists other conditions for such foreign investment, including a new article on national security. The article stipulates that foreign investment in the field of national defense shall be subject to national security review, and the government reserves the right to review foreign investment in the field of national defense that affects or may affect national security. There was no national security provision in the previous FDI guidelines, but it did require that foreign investment in the field of defense should be subject to the security review and guidance of the Ministry of defense. Other new conditions for foreign investment include the need for new industrial licenses and the need for security reviews by the Ministry of the interior when new FDI reaches 74 per cent of the equity of local enterprises. (end) source of this article: Yao Wenguang, editor in charge of global network_ NN1682

However, the Ministry also lists other conditions for such foreign investment, including a new provision on national security.

The article stipulates that foreign investment in the field of national defense shall be subject to national security review, and the government reserves the right to review foreign investment in the field of national defense that affects or may affect national security.

There was no national security provision in the previous FDI guidelines, but it did require that foreign investment in the field of defense should be subject to the security review and guidance of the Ministry of defense.

Other new conditions for foreign investment include the need for new industrial licenses and the need for security reviews by the Ministry of the interior when new FDI reaches 74 per cent of the equity of local enterprises. (end)