MSMEs to benefit most from 49% FDI in defence; should register with army commands
Updated: Aug 09, 2014 01:48:21pm
Jaipur, Aug 9 (KNN) Micro, small and medium enterprises will be encouraged by the centre’s decision allowing 49 per cent FDI in defence sector, said an army personnel adding that the MSMEs should get themselves registered with the various commands of the army as suppliers.
The Cabinet on Wednesday cleared the long-delayed proposal for raising FDI limit in defence to 49 per cent from current 26 per cent, with the condition that control in joint venture manufacturing defence equipment will remain in Indian hands.
South Western Army Commander Lt Gen Arun Kumar Sahni has said that the move will encourage MSMEs in the country.
Addressing the inaugural session of an industrial expo conference held by CII here, Sahni said the biggest gainers of the decision would be the MSMEs.
He said the move will encourage MSME sector and make procurement procedure not only easier, but also competitive.
EXIM Bank of India Chairman and Managing Director Yaduvendra Mathur said that under the new policy, the defence production units will be able to collaborate with the Indian MSMEs profitably.
"The Indian MSMEs should try and go global as the opportunities are immense but they could only do so if they can offer high class quality products and prove themselves as the real hidden champions," he said.
According to the public procurement policy, every central ministry, department and PSU has to procure 20 per cent of the annual purchases of products or services produced or rendered by MSEs. (KNN/SD)
The Cabinet on Wednesday cleared the long-delayed proposal for raising FDI limit in defence to 49 per cent from current 26 per cent, with the condition that control in joint venture manufacturing defence equipment will remain in Indian hands.
South Western Army Commander Lt Gen Arun Kumar Sahni has said that the move will encourage MSMEs in the country.
Addressing the inaugural session of an industrial expo conference held by CII here, Sahni said the biggest gainers of the decision would be the MSMEs.
He said the move will encourage MSME sector and make procurement procedure not only easier, but also competitive.
EXIM Bank of India Chairman and Managing Director Yaduvendra Mathur said that under the new policy, the defence production units will be able to collaborate with the Indian MSMEs profitably.
"The Indian MSMEs should try and go global as the opportunities are immense but they could only do so if they can offer high class quality products and prove themselves as the real hidden champions," he said.
According to the public procurement policy, every central ministry, department and PSU has to procure 20 per cent of the annual purchases of products or services produced or rendered by MSEs. (KNN/SD)
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