Question: Will the Minister of DEFENCE be pleased to satate :-

ANSWERED ON 07.08.2013

(a) whether there was a proposal to hike Foreign Direct Investment in defence sector which this Ministry did not agree;

(b) if so, the details thereof;

(c) whether a case by case examination to increase FDI limit has been agreed to; and

(d) if so, the reasons therefor?

Answer: Minister of Defence (Shri A.K. Antony)

(a) & (b): Yes, Sir. The proposal was to allow FDI to go up to 49%, inclusive of portfolio flows, in defence production.

(c) & (d): FDI up to 26% is permissible in the defence sector, subject to licensing. However, wherever FDI beyond 26% is likely to result in access to modern and state-of-the-art technology into the country, decisions can be taken to allow higher FDI on a case-to-case basis with the approval of the Cabinet Committee on Security.

Miscellaneous

Defence Economics & Industry