News Brief
Swedish Defence Giant Saab To Fuel Indian Defence Sector With Rs 500 Crore Rocket Production Plan, Gets 100 Per Cent FDI Nod
Saab's rocket missile launch (Representative Image)
In a significant boost to the Indian defence manufacturing sector, the Swedish firm Saab has received approval from the Indian government for its ambitious plan to establish a rocket manufacturing facility in India and commence production by 2024.
This development comes as New Delhi granted the green light to 100 per cent foreign direct investment (FDI) in the defence sector, a notable milestone in India's efforts to attract foreign investment and technology expertise, as reported by Moneycontrol.
The FDI proposal from Saab, valued at under Rs 500 crore, was officially cleared in October.
While India currently allows up to 74 per cent FDI in the defence sector under the automatic route, approvals beyond this threshold are granted on a case-by-case basis.
The approval for 100 per cent FDI signals India's eagerness to enhance its defence manufacturing capabilities and facilitate technology transfer.
This decision also paves the way for potential collaborations and partnerships between Saab and global defence companies, which could contribute significantly to the modernisation of India's defence industry.
Saab has demonstrated its commitment to the 'Make in India' initiative by fostering local manufacturing and collaboration with Indian companies such as Munitions India Limited (MIL) and Advanced Weapons and Equipment India Limited (AWEIL).
Saab's dedication to India extends beyond mere investment, as the company envisions becoming an Indian entity in the future.
By seeking 100 per cent ownership in specific areas, the Swedish defence manufacturer aims to establish a deeper presence in the Indian defence industry, recognising India as one of the most crucial markets worldwide.
The establishment of Saab FFV India, dedicated to manufacturing the latest generation of the Carl-Gustaf M4 system in India, marks a significant milestone for both Saab and the Indian defence sector.
The facility, expected to be located in Haryana, will play a vital role in advancing India's defence manufacturing capabilities.
Saab's strong performance in the third quarter, with a remarkable 51 per cent increase in operating profit to $76.9 million compared to the previous year and a notable 31 per cent organic sales growth, underscores the robust demand for its products and services.
This approval for 100 per cent FDI and Saab's strategic commitment to the Indian market reaffirm the company's position as a key player in India's defence ecosystem, further strengthening the country's national security capabilities.
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