Inviting global companies to invest in India’s defence, space and civil aviation sectors, Prime Minister Narendra Modi on Wednesday said that the country was raising the Foreign Direct Investment cap in the defence sector to 74% and also mentioned the two defence corridors set up to encourage production of defence equipment.
“India invites you to invest in defence and space. We’re raising the FDI cap for investment in defence sector to 74%. India has established two defence corridors to encourage production of defence equipment and platforms,” PM Modi said at the India Ideas Summit hosted by the US-India Business Council. He was delivering the keynote address at the virtual summit.
He particularly invited US companies to invest in India’s healthcare, infrastructure, defence, energy, civil aviation and insurance sectors, saying the country offers openness, opportunities and myriad options for investments.
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“Today, there is global optimism towards India. This is because India offers a perfect combination of openness, opportunities and options. Let me elaborate. India celebrates openness in people and in governance,” he explained.
Mentioning India’s Ease of Doing Business ratings awarded by the World Bank, the Prime Minister said, “When the markets are open, when the opportunity is high and the options are many, can optimism be far behind! You can see the optimism when India rises in key business ratings.”
The Prime Minister cited the civil aviation space as another area of great potential. The number of air travellers is expected to more than double within the next 8 years in the country. The top private Indian airlines have plans to include over a thousand new aircraft over the coming decade, he added.
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The Summit is being hosted by the US-India Business Council. This year marks the 45th anniversary of the formation of the Council. The theme for this year’s India Ideas Summit is ‘Building a Better Future’.
The virtual Summit will also see participation from Minister of External Affairs Dr S Jaishankar, US Secretary of State Mike Pompeo, former US Ambassador to the United Nations Nikki Haley, among others.