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- Sweden’s Saab has become the first foreign company to bag 100% FDI in India’s defence projects.
- Currently, India allows only 74% FDI in the defence sector under the automatic route.
- After that, clearance can be obtained on a case-by-case basis. The rules for clearance were relaxed in 2015.
- Saab has set up a new company – Saab FFV India to make the new generation of the Cal-Gustaf M4 system.
- A new facility to manufacture shoulder-fired rockets will be set up by Saab in Haryana.
- It will be the first time that Saab will manufacture shoulder-fired rockets outside Sweden.
- The shoulder-fired rockets are already in extensive use by the Indian armed forces.
- A Rs 500 crore proposal from Saab was cleared in October.
- In 2016, a French company DCNS sought approval for 100% FDI to set up an Indian subsidiary but it could not get the required permissions.
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