The government in August has allowed FDI up to 49 percent on approval route in defence sector with certain conditions.
Foreign Direct Investment (FDI) equity inflows into India increased by 24 percent year-on-year to USD 22.43 billion during January-September 2014, the Commerce and Industry Ministry said today.
During January-September 2013, FDI equity inflows stood at USD 18.07 billion.
The ministry also said total FDI into India, since April 2000 and September 2014, including equity inflows, reinvested earnings and other capital, stood at USD 345.29 billion. About FDI liberalisation in the defence sector, it said the move is expected to result in technology transfer which would help in increasing the production base and providing an impetus to manufacturing sector and job creation in India.
“The measure is expected to not only reduce the heavy burden of imports and conserve foreign exchange reserves but also make domestic manufacturing an integral part of GDP
growth of the country,” it added.
The government in August has allowed FDI up to 49 percent on approval route in defence sector with certain conditions. Above 49 percent, the proposal will be routed to Cabinet
Committee on Security on a case to case basis, wherever it is likely to result in access to modern and state-of-art technology in the country.
On the move to allow 100 percent private and FDI investment under automatic route in rail infrastructure, it said that the decision would facilitate FDI inflows into infrastructure projects including elevated rail corridor project in Mumbai and high speed train project.
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