More FDI In Defence Manufacturing, No Import of Weapons that can me Made in INDIA

Companies abroad are going to be ready to invest up to a maximum 74 per cent in defence manufacturing in India, up from 49 per cent, minister of finance Nirmala Sitharaman said on the fourth day of mega reform and relief announcements amid the coronavirus pandemic.

The upper foreign direct investment (FDI) limit on defence manufacturing is under the automated route, that government approval isn't required, Ms Sitharaman said. India also will stop importing weapons which will be made reception , the minister of finance said.

"We will notify an inventory of weapons and platforms for ban on their imports and fix deadlines to try to to it," Ms Sitharaman said, adding this move will

improve self-reliance on defence manufacturing.

"…Every year this list are going to be increased," she said.

"Even the spares of those weapons need to be manufactured locally.

This may help reduce an enormous defence import bill," the minister of finance said. The Ordnance Factory Board or OFB that creates weapons for the country's military are going to be made more professional. "We will work to enhance autonomy, accountability and efficiency of OFB by corporatisation and not privatisation," the previous Defence Minister said.

The OBF runs 41 factories in 24 locations across the country.

Any move at privatisation is probably going to be resisted by the workers. Ms Sitharaman said they're going to simplify the documents needed to shop for weapons by making them "realistic".

"Sometimes the overall staff qualitative requirement (GSQR) might be unrealistic.

we'll make it more realistic that matches with the requirements . Weapon trial and testing procedures also will be overhauled," Ms Sitharaman said.

The GSQR is among the primary steps in buying capital equipment, which contains why the equipment is required and its expected quality standards.