New measures to encourage FDI
Defence Minister Rajnath Singh has unveiled the Defence Acquisition Procedure (DAP) 2020 in New Delhi on 28 Sept 2020 which has been revised periodically to provide impetus to the growing domestic industry and achieve enhanced self-reliance in defence manufacturing.
The DAP 2020, first promulgated in 2002, will be applicable with effect from 1 October 2020. Formulation of DAP 2020 has been done over more than one year, incorporating comments and suggestions from a wide spectrum of stakeholders as under:
DAP 2020 has been aligned with the vision of the Government of Atmanirbhar Bharat and empowering Indian domestic industry through Make in India initiative with of turning India into a global manufacturing hub.
With the new Foreign Direct Investment (FDI) policy announced, DAP 2020 has adequately included provisions to encourage FDI to establish manufacturing hubs both for import substitution and exports while protecting interests of the Indian domestic industry.
The FDI Policy has incorporated new category ‘Buy (Global – Manufacture in India)’ which is to encourage foreign OEMs to setup ‘manufacturing and maintenance entities’ through a subsidiary in India while enabling requisite protection to the domestic industry. #MakeinIndia #manufacturing #FDI #investment #policy #defence /fiinews.com
