In August this year, India’s Defence Minister Rajnath Singh announced an embargo on the import of 101 types of defence equipment worth $47 billion to boost domestic industry. The Defence Ministry revealed that a budget of $7 billion has been set aside for domestic capital procurement in the current financial year.
The Indian government, which increased the Foreign Direct Investment (FDI) cap in defence sector investments to 74 percent under the automatic route this past May, said that such investments will be subject to scrutiny due to national security concerns.
A press note released by the Department of Promotion of Industry and Internal Trade (DPIIT) said that foreign investment in the sector is subject to security clearance and the guidelines set by the Ministry of Defence.India is apparently creating its own military-industrial complex in increase national security by achieving greater self-sufficiency. More "military Keynesianism" to stimulate the economy?
Sputnik International
Traditional Arms Suppliers 'to be Pressured' as India OKs National Security Clause in Defence FDI
It probably means "cut chinese exports to India", but indeed more generally import substitution. I guess that the indian strategists have figured out that next on the USA list of potential rivals to cut down to size after Russia and China there is India, which is already surrounded by USA bases (except of course on the China side, so it is among the USA interests to increase tensions between China and India over some worthless glacier).
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