FDI in defence sector
17 December, 2014
The Department of Industrial Policy and Promotion (DIPP) has provided a list of defence items as finalised by Department of Defence Production, Ministry of Defence and has clarified that items not in the list, and dual use items i.e. items having military as well as civilian applications, would not require industrial license for defence purposes.
Further, according to RBI Circular No. 46 dated 8-12-2014, listed investee company engaged in defence sector, shall immediately allocate limits for portfolio investment for RFPI (including QFI and FII), NRI (not exceeding 10%) and FVCI within the default portfolio investment limit of 24% permitted now, and approach RBI so that allocated limits can be monitored.