FDI limit of 49 per cent is composite and includes all kinds of foreign investments
Picture used for representational purpose. (Photo: PTI)
New Delhi: The Centre on Tuesday notified increase in foreign direct investment (FDI) limit in defence to 49 per cent through approval route.
The FDI above 49 per cent in defence projects will be allowed on the approval of Cabinet Committee on Security on case to case basis only where it is likely to result in access to modern and state of the art technology in the country.
FDI limit of 49 per cent is composite and includes all kinds of foreign investments, FDI, FIIs, FPIs, NRIs, foreign venture capital investors and qualified foreign investors. However, portfolio investments by FPIs, FIIs, NRIs, QFIs and FVCIs together will not exceed 24 per cent of the total equity of the investee or joint venture company. The portfolio investments will be under automatic route.
( Source : dc correspondent )
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