Indian Defence Industry acquired FDI of USD 2.18 million: Commerce and Industry Minister Piyush Goyal announces

Indian Defence Industry acquired a Foreign Direct Investment (FDI) of USD 2.18 million during 2018-19. This was anunced at parliament on Wednesday.

In 2014-15, 2015-16, and 2017-18, sector attracted FDI worth USD 0.08 million, USD 0.10 million and USD 0.01 million, respectively. Commerce and Industry Minister Piyush Goyal submitted a written reply in Lok Sabha.  As per statement submitted by Goyal, 2016-17 quarter saw a reduced overseas investment.  or sectors which received zero inflows during last fiscal include photographic raw film and paper, and coir. 

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current policy states that foreign investment which is beyond 49 per cent is only permitted through approval route in defence sector. ditionally, FDI limit for defence sector has also been me applicable for manufacturing small arms and ammunition which fall under Arms Act, 1959. overall FDI inflows declined for first time in last six years in 2018-19, falling 1 per cent to USD 44.37 billion as foreign investments saw a major drop in telecommunication and pharmaceutical sectors. 

A stey flow of FDI aids in improving country's balance of payments situation and strengns value of rupee against or global currencies, mainly US dollar. In ar question, minister said that a request for an industrial park at Kolar Gold Fields has been received.

Earlier in March, four indigeusly-developed and manufactured Dhanush howitzers were inducted into force for deployment on front lines on March 26.  Dhanush gun system is based on designs of Bofors howitzer which was inducted in Army in 1980s and would be third of artillery gun to be inducted into force after K-9 Vajra and M-777 ultra-light howitzers. 

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Dhanush is a 155mm x 45mm calibre artillery gun and after undergoing multiple tests will replace older 105 mm Indian Field Gun, 105 mm Light Field Gun and Russian 122 mm guns with a modern 155mm artillery gun.  Army h placed an order for more than 110 of se guns with Ordnance Factory and y would help force to modernise its artillery which h been awaiting induction for over three deces till sometime ago.

(With PTI inputs)