Question: On 20 June 2016 the high-level meeting chaired by the Prime Minister has increased the FDI in the defence sector (FDI) to what percentage?
(a) 74%
(b) 100%
(c) 51%
(d) 49%
Ans:(b)
Related facts:
- On 20 June 2016 high-level meeting chaired by the Prime Minister has increased the percentage limit of Foreign Direct Investment(FDI) in several sectors.
- The government announced 100 per cent foreign direct investment in the defence sector .
- In defence sector present FDI limit permits 49% FDI participation in the equity of a company under automatic route. FDI above 49% is permitted through Government approval on case to case basis.
- The extant FDI policy on Airports permitted to 100% FDI under automatic route in Greenfield Projects and 74% FDI in Brownfield Projects under automatic route.
- FDI beyond 74% for Brownfield Projects is provided under government route.
- Among other decisions, 100 per cent FDI has been permitted in teleports, direct-to-home, cable networks and mobile TV under the automatic route.
- The government has decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.
Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=146338