To improve the ease of doing business and boost defence manufacturing, the government on Wednesday decided to increase the validity of industrial licence to seven years with a provision for further extension of three years.
The commerce and industry ministry said this was being done in view of the long gestation period of defence contracts to mature.
“...the initial validity of industrial licence for defence sector is being revised to seven years, further extendable up to three years for existing as well as future licences,” the Ministry stated.
Earlier, the validity of such licence for the defence sector was for three years, and extendable up to seven years. The government has said it wants to bring India's rank within top 50 in terms of ease of doing business, from 142nd currently, according to the latest World Bank report.
Last year, the government relaxed the foreign direct investment policy in the defence sector to 49 per cent, from the earlier 26 per cent.
