India Withdraws Tax Incentives to State Defense Companies

India govt withdraws excise, customs duty exemptions to Ordinance Factory Board, state-owned defense cos; move aimed at giving level playing field to local private cos, trade ministry says in statement.

  • Move takes away strategic advantage enjoyed by state-run defense cos for quoting lower rates in open bids;
  • Fulfilled demand of foreign Original Equipment Manufacturers such as Boeing, Airbus, Lockheed Martin, BAE Systems that are actively exploring investments in India: statement
  • Hope decision to stimulate big ticket investments, incentivize manufacturing
  • PIB statement weblink
  • NOTE: Modi Skirts Indian State Warplane Maker to Counter China’s Power

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