Companies in India defence sector report £484m FDI, says government
An artillery regiment of the Indian Army. (Photo by DIBYANGSHU SARKAR/AFP via Getty Images)
HERE are news related to Indian economy and business for Friday, February 9, 2024:
Companies in the Indian defence sector have reported foreign direct investment (FDI) totaling Rs 5,077 crore (£484 million), according to the defense ministry’s statement in the Lok Sabha or Lower House of the parliament on Friday. Minister of state for defence Ajay Bhatt provided the data in response to a query. The defence industry opened to private sector participation in May 2001, Bhatt noted. “The FDI limit in the defence sector was enhanced in 2020 up to 74 per cent through the automatic route for companies seeking new defence industrial licence and up to 100 per cent by the government route wherever it is likely to result in access to modern technology,” Bhatt said. The minister emphasised the government’s efforts to encourage FDI through co-development and co-production of specialised defence technologies with foreign original equipment manufacturers.
Tata Power, one of India’s leading integrated utilities, has announced impressive financial results for the third quarter of the financial year 2023-24 (Q3 FY24). According to a press release by the company, it reported a Profit After Tax (PAT) of Rs 1,076 crore (£102.6 million), marking a significant growth trajectory and extending its streak of consecutive quarterly PAT growth to a remarkable 17 quarters. In a statement released today, Tata Power highlighted the robust performance across its core business segments, including Generation, Transmission and Distribution, and Renewables. The company’s Q3 FY24 revenue surged to Rs 14,841 crore (£1.4 billion), representing a noteworthy increase compared to Rs 14,339 crore (£1.36 billion) reported in the corresponding quarter of the previous fiscal year.
Brazilian aerospace giant Embraer and India’s Mahindra on Friday announced a collaboration to supply the Indian Air Force (IAF) with the C-390 medium transport aircraft. The IAF seeks to replace its ageing AN32 fleet with 40 to 80 medium transport aircraft. The memorandum of understanding was signed at the Brazilian embassy in New Delhi. The partnership aims to introduce advanced aerospace and military transport technology to India, potentially establishing India as a hub for the C-390 aircraft in the region. “We are honoured to announce this MoU with Mahindra. India has a diverse and strong defence and aerospace industry and we have chosen Mahindra as our partner to jointly pursue the MTA programme,” Bosco da Costa Junior, president and CEO of Embraer Defense and Security said, adding that they support India’s ‘Aatmanirbhar Bharat’ (self-reliant India).
Indian road transport and highways minister Nitin Gadkari on Friday said that at the end of 2024, the country’s national highway road network will be equivalent to the road network of the United States. He said this while addressing the ET NOW Global Business Summit 2024 in New Delhi, outlining a vision for revolutionizing India’s infrastructure landscape. In his address, Gadkari emphasized the pivotal role of robust infrastructure in driving economic growth and development across various sectors. “If we need capital investment, development in the industry, we should have good infrastructure. Without infrastructure we cannot develop our agriculture, service industry, tourism and that is the most important thing after 2014 when (Narendra) Modiji became the prime minister of this country,” he said.
Indian commerce and industry minister Piyush Goyal on Friday spoke at the ET NOW Global Business Summit 2024 in New Delhi where he emphasized India’s journey towards fiscal stability, honest governance, and developmental aspirations, under the leadership of prime minister Narendra Modi. When questioned on the confidence that the ruling Bharatiya Janata Party had on returning to power in 2024, Goyal said the party is confident of the work it had done. “I can assure you…we are never arrogant. We are confident in our ability, we are confident in the people of India, we are confident that the people of India know what is best for them,” he said.