The Indian government has approved Saab’s 100 percent foreign direct investment to manufacture the Carl-Gustaf recoilless rifle in India, marking the first wholly owned foreign venture in the country’s defense sector.
In its statement Thursday about the approval, Saab said the shoulder weapon will be manufactured in partnership with Indian sub-suppliers and fully compliant with Make In India requirements.
Gorgen Johansson, Saab’s head of Dynamics business area, said the investment approval highlights the company’s commitment to Make In India and strong ties with the Indian Armed Forces.
According to the Swedish defense contractor, the Indian Army has been using the Carl-Gustaf system as a main shoulder-launched weapon since 1976. The Carl-Gustaf investment in India is valued at $60 million, with the company’s newly created Indian subsidiary, Saab FFV India, handling the business.
India relaxed its FDI clearance rule for the defense sector in 2015, which allows up to 74 percent foreign ownership via the automatic route and 100 percent on a case-to-case basis.
