Sweden's Saab bags India's first 100% FDI in defence project
India has cleared the first 100% foreign direct investment (FDI) in the defence sector, with permissions granted to Sweden's Saab to set up a new facility that will manufacture rockets.
Sources said the FDI proposal, valued at under ₹500 crore, was cleared last month. India currently allows up to 74% FDI in the defence sector under the automatic route.
Beyond that, clearances can be obtained on a case-by-case basis. While clearance rules were relaxed in 2015, no foreign company had, until now, been able to get permission for 100% FDI in defence.
A new company, Saab FFV India, has been registered and will make the latest generation of the Carl-Gustaf M4 system.
Likely to come up in Haryana, the facility will include advanced technologies, including the sighting tech and carbon fibre winding for the Carl-Gustaf system. The shoulder-fired rockets are already in extensive use by the Indian armed forces and can be exported as well once local production starts.
«We are proud to be the first global defence company to be approved by the Indian government for 100% foreign direct investment for our new Carl-Gustaf manufacturing facility in India,» said Mats Palmberg, chairman and managing director, Saab India.
«This is another step in Saab's commitment to 'Make in India,' and we look forward to continuing our collaboration with our Indian partners and to supporting the Indian armed forces with production of Carl-Gustaf in India.»
This will be Saab's first Carl-Gustaf M4 production line outside Sweden, with manufacturing to commence next year. The shoulder-launched weapon system is in use by the US, European and Indian armed forces and is used to take down fortified enemy positions, armour and personnel.
In 2016, French firm
