The proposal was cleared by the Foreign Investment Promotion Board, Finance Ministry said in a statement.
The $100-million fund, which has the option to raise a further $200 million, will benefit small and medium enterprises engaged in defence production.
The Foreign Investment Promotion Board has cleared a proposal by German plastic moulding major Ralf Schneider to set up a wholly-owned subsidiary in India, setting aside objections raised by its former Indian partner Larsen & Toubro under Press Note 1 of the Foreign Direct Investment policy.
The government on Friday cleared 21 foreign direct investment proposals envisaging Rs 35.55 crore (Rs 355.5 million) investment, including Rs 27 crore (Rs 270 million) proposal by Advanced Mineral Asia Pte.
The health ministry plans to oppose the application from Japan Tobacco International Ltd, the world's third largest tobacco company, to the Foreign Investment Promotion Board to raise its stake in its Indian venture from 50 to 74 per cent. The application is slated for consideration in the FIPB meeting on Tuesday.
'The net inflows into MF schemes may also have been lower last month, with investors booking profit and taking a more measured approach amid elevated valuations.'
The government cleared 15 foreign direct investment proposals worth Rs 70.1 crore (Rs 701 million) including that of Honda Motor, Teva Pharmaceuticals, Fijitsu, Atlanta Electricals and Marubeni Corporation.
Financial power-house JP Morgan's Rs 175 crore (Rs 1.75 billion) investment in its Indian arm was among the 44 foreign direct investment proposals worth Rs 222.19 crore (Rs 2.22 billion) cleared by the government on Tuesday.\n\n\n\n
The divestment ministry is approaching the Foreign Investment Promotion Board for permission to allow foreign institutional investors, NRIs and overseas corporate bodies to participate in the ensuing public offer for government stake in MUL.
The Union government on Friday cleared 25 foreign direct investment proposals worth Rs 201.58 crore (Rs 2.02 billion), including one for the development of integrated township in Bangalore.
"There could be a slight delay in getting the approval from SEBI, so there could be few days delay in starting the open offer but we are still on target to complete this transaction by middle of December."
Finance Minister Jaswant Singh has cleared 38 foreign direct investment proposals worth Rs 121.46 crore (Rs 1,214.6 million), including those of the United States-based Nalco Chemicals and French company FCI.
FIPB split over Bates' Sercon stake buy. Ravi Shastri's firm alleges violation of Press Note 1.
Hong Kong-based Hutchison Telecom Limited is expected to submit details of loans to two Indian minority shareholders this week to the finance ministry, which is looking into alleged breach of foreign direct investment norms in Hutch-Essar.
Banks will be able to give loans to Indian companies for acquiring the entire equity stake or a controlling part of it in domestic or foreign firms as strategic investment that creates long-term value rather than for short-term financial restructuring if the Reserve Bank of India's (RBI's) draft circular, issued on Friday, comes to fruition.
So, the fight is for the signature cafe, restaurant and the Swedish meat ball IKEA is known for, besides its furniture stores.
The Foreign Investment Promotion Board is believed to have permitted Pearson Overseas Holding to initially acquire 13.85 per cent in Business Standard
The exemption of individual life and health insurance premiums from the Goods and Services Tax (GST) enables the insurance industry to make products affordable and attractive, said Ajay Seth, chairman of Insurance Regulatory and Development Authority of India (Irdai) at the Business Standard BFSI Insight Summit 2025.
FIPB clears Telenor proposal to raise stake in Indian unit with the clause that officials who have worked in Pakistan will not be allowed in India.
Indian IT major Infosys Technologies' proposal to increase its American Depository Shares from 3.5 per cent to between 6.27 and 7.78 per cent was amongst 50 foreign direct investment proposals
the Company Affairs Ministry has come out in support of Essar by asking FIPB to change guidelines that allow greater say to the Indian partner in the consultative process.
UK-based Vodafone is not the only one awaiting the Indian government's call on its purchase of stake in Hutch-Essar, US coffee retail giant Starbucks is also anxiously looking for a decision on the issue.
The Foreign Investment Promotion Board is believed to have cleared Zee Telefilms' plan of raising $100 million as foreign currency convertible bonds subject to the condition that the company brings down total foreign shareholding to 26 per cent
Divestment ministry is believed to have received an in-principle nod from FIPB for participation of FIIs, NRIs, and OCBs in the ensuing public offer government equity in car-maker Maruti Udyog Limited.
Star's application seeking uplinking from India appears to have hit yet another roadblock with the Foreign Investment Promotion Board raising certain queries in its last meeting.
Amid a government scrutiny into the alleged breach of FDI norms by Hutchison Telecom International, the Hong Kong-based firm on Monday asserted its Indian mobile venture Hutch Essar Ltd (HEL) did not violate any regulations.
The Securities and Exchange Board of India (Sebi) has identified around Rs 77,800 crore as "difficult-to-recover" or DTR dues in its annual report for 2024-25 (FY26), marking a nearly 2 per cent increase from the previous year. These dues remain unrecovered despite exhaustive recovery efforts.
Retail giant Tesco will make foray into Indian retail market as it has signed an agreement with Tata Group-led Trent.
Coca-Cola's proposal for giving its shareholders differential voting rights after it recently completed divestment of 49 per cent equity in favour of resident Indians is still pending with the government, company sources confirmed on Thursday.
The 2025 US National Security Strategy marks a major pullback, with America turning backward and effectively allowing China greater dominance in Asia. while long-time partners like India are left to face an increasingly unstable global order largely on their own, observes Rajeev Srinivasan.
DaimlerChrysler plans to buy 26% of the bus body builder Sutlej Motors. The two companies will then jointly manufacture buses for the Indian roads.
Coca-Cola's proposal for giving Indian shareholders differential voting rights is believed to have come up for discussion at Foreign Investment Promotion Board's meeting held on March 13, sources said in New Delhi on Friday.
Abu Dhabi-based Etihad Airlines has agreed to halve the number of directors on the Jet Airways Board to two posts under the Rs 2,058 crore deal, giving the Indian promoters 'effective control' of the carrier.
