India approves 100% foreign direct investment for Saab manufacturing f…
Saab FFV India will support the production of the Carl-Gustaf M4 recoilless rifles (pictured above) for the Indian Armed Forces. (ECDI)
The Indian government has approved 100% foreign direct investment (FDI) for Swedish defence company Saab to set up a new manufacturing facility in India, Mats Palmberg, chairman and managing director of Saab India, told Janes on 8 November.
Saab is the first company to gain 100% FDI approval from India. The country earlier permitted only 74% FDI in the defence sector through the automatic route for companies seeking a new industrial licence.
“We are proud to be the first global defence company to be approved by the Indian government for 100% FDI for our new Carl-Gustaf manufacturing facility in 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 supporting the Indian Armed Forces with [the] production of Carl-Gustaf in India. We are on track to start construction in the near future,” Palmberg said.
The new facility – named Saab FFV India – will support the production of the Carl-Gustaf M4 recoilless rifles for the Indian Armed Forces as well as components for users of the system around the world, Palmberg added.
According to Saab, production at the new facility is planned to start in 2024.
The Carl-Gustaf system has been in service with the Indian Army since the first co-operation agreement for production in India was signed in 1976, Saab said in a recent press release.
According to Janes Weapons: Infantry, the Carl-Gustaf M4 is an 84 mm, shoulder-fired, manportable, breech-loaded, percussion-fired recoilless rifle with a length of 1 m and a weight of 7 kg.
