Higher FDI in defence sector on case-to-case basis: Antony

New Delhi, May 20 (PTI) With the Indian Commerce Ministry
suggesting hike in FDI in defence sector from 26 per cent to
74 per cent, Defence Minister A K Antony today said higher FDI
could be considered "on a case-to-case basis" but not done as
a standard policy as the industry was not "mature enough".
"At the moment it (policy on FDI in Defence) is 26 per
cent. Our Defence Production Policy (DPP) is evolving over the
years...But at the moment we feel Indian defence sector is not
mature enough...not ready to absorb more FDI in defence
sector. We feel that time is not right to further expand it,"
Antony told reporters after addressing Navy Commanders here.
At the same time, he said, higher FDI in defence sector
could be allowed "on a case-to-case basis" and that
"ultimately, forever I cannot rule out (higher FDI)."
He was responding to a question on Commerce Ministry's
suggestion that FDI in defence sector be raised to 74 per cent
from the existing 26 per cent to augment resources for greater
acquisition of equipment for the armed forces.
"Commerce Ministry has brought out a discussion paper
only. The Commerce Minister himself said it is a discussion
paper. We can discuss. There is no problem. You should not
think there is a clash (between the two ministries)," Antony
said.
Initially, the Defence Minister said, the Public Sector
Undertakings had 100 per cent monopoly in the defence sector.
But the policy was changed this decade to first allow 100 per
cent domestic private participation and later 26 per cent FDI.
The foreign players in the defence sector have been
making a forceful plea for a hike in the FDI limit, eyeing the
over USD 50 billion Indian defence spending expected over the
next five years. PTI NCB
RDM


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