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

(a) whether Government has decided to increase the FDI limit in Defence Industry;

(b) if so, the details thereof; and

(c) the expected benefits to the defence sector through this decision?

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

(a) & (b): 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.

(c) It is difficult to assess at this stage the likely benefits to the Defence Sector.

Miscellaneous

Defence Economics & Industry