India’s Enhanced Foreign Investment Limit To Benefit Defense Sector

India has increased the FIPB (Foreign Investment Promotion Board) monetary limit for approving Foreign Direct Investment (FDI) in 15 sectors including Defense and Civil Aviation.

This is the second time the FIPB monetary limit has been raised in a year. The new limit for the clearance will be projects worth INR 5000 crores ($754 million) from the previous INR 3000 crore ($452 million).

Earlier in May this year, the FIPB limit was raised from INR 1200 crore ($181 million) to $452 million.

"To further boost this entire investment environment and to bring in foreign investments in the country, the Government has brought in FDI related reforms and liberalisation touching upon 15 major sectors of the economy," the Ministry of Commerce and Industry said in a press release that listed the sectors for which FDI measures have been announced today.

"The crux of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of government route where time and energy of the investors is wasted,” the press release stated.