 "Nirmala Sitharaman")
With the Centre approving 100% Foreign Direct Investment (FDI) in the defence sector in a bid to encourage 'Make in India' and boost the investment inflow into the country, Minister of State for Commerce and Industry Nirmala Sitharaman on Monday said the process has been eased out, but not at the cost of national security.
She told ANI, "We are easing it out, but not compromising on national security."
"In Defence Sector, 100% FDI is possible because we have not touched any of the national security related requirements. They will still have to comply with each one of those requirements. We have not relaxed the norms on nation security or internal security related norms. We are inviting state-of-the-art technology and want investments to come in," she added.
Sitharaman said the decision on FDI has been taken with an intention of making India a manufacturing hub and providing jobs for the youth.
"Unless investment happens in manufacturing that will not be possible, and therefore this policy," she said.
"The FDI that we are announcing will make it lot more simpler. Many conditions which were prevailing earlier have been removed. What was announced by the FM in the Budget has been honoured. Sectors which were already identified are the sectors in which now we are bringing in clarity," she added.
Monday's decision will allow 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India.
The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi.
This is the second major reform after the last radical changes announced in November last year.
