Context:

• India has invited greater participation from Israeli defence companies under the new liberalised foreign direct investment (FDI) regime in defence manufacturing.

Details:

• In May 2020, the government increased the limit for FDI in defence through the automatic route from 49% to 74%.
• Indian Armed Forces are undertaking a series of emergency defence purchases, including from Israel, amid ongoing tensions with China.
• The decision has been taken by the Army to order another batch of 12 launchers and around 250 missiles of Spike Anti-Tank Guided Missiles (ATGM) and additional Heron Undermanned Aerial Vehicles (UAV), among others, from Israel through the emergency procurement route.

Referrence: https://www.thehindu.com/news/national/border-row-with-china-figures-in-rajnaths-telephonic-talks-with-israeli-defence-minister/article32183371.ece

Download PDF