Amending FDI in Defence sector to enhance Ease of doing Business: Goyal

Union Minister for Commerce and Industry Piyush Goyal on Friday said that he "welcomed Prime Minister Narendra Modi's decision to amend the Foreign Direct Investment Policy in the Defence Sector.

"Welcome PM Narendra Modi ji's decision to amend the FDI policy in Defence Sector. Now, FDI is allowed up to 74% through automatic route and beyond 74 per cent to be permitted through Govt route. This will enhance Ease of Doing Business & contribute to (the) growth of investment, income and employment," Goyal tweeted.

He further said that foreign investments in the defence sector shall be subject to scrutiny on the grounds of national security.

"Foreign investments in (the) defence sector shall be subject to scrutiny on grounds of National Security. In line with our collective vision of Aatmrbhar Bharat, amendments will enhance self-reliance in defence production, while keeping national interests & security paramount," he wrote further in a tweet.

The Centre on Thursday announced that FDI up to 74% under automatic route shall be permitted for compes seeking new industrial licenses, according to a press note by the Department for Promotion of Industry and Internal Trade.

( With inputs from ANI )