The FDI hike in defence is intended to cut imports by indigenising defence production as India is one of the world's largest arms importers.
"It is a composite cap, incorporating all forms of foreign investment, FDI, FII, FPI, NRI, etc," said a government official confirming that the proposals has been cleared.
Foreign investment in defence will be though the approval route, implying it will have to be cleared by the Foreign Investment Promotion Board (FIPB).
Shares of companies with interest in defence sector moved higher after the Union Cabinet approved to raise limit of foreign investment in the sector to 49 per cent from the current 26 per cent.
"It is a composite cap, incorporating all forms of foreign investment, FDI, FII, FPI, NRI, etc," said a government official confirming that the proposals has been cleared.
Foreign investment in defence will be though the approval route, implying it will have to be cleared by the Foreign Investment Promotion Board (FIPB).
Shares of companies with interest in defence sector moved higher after the Union Cabinet approved to raise limit of foreign investment in the sector to 49 per cent from the current 26 per cent.
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