Mahindra Group Chairman Anand Mahindra welcomed the cabinet decision to allow 49 per cent foreign direct investment (FDI) in the defence sector, saying that the move would help bring new technology partners into the group's defence ventures.
"The recent announcement of 49 per cent FDI in the defence sector will enable us to access global partners who could complement our strengths and bring in new technologies," Mahindra told shareholders at the 68th Annual General Meeting of the company here today evening.
Mahindra Defence has had a long history of providing armoured vehicles to the army and police, he said.
"We entered the defence sector many years ago. We were disappointed earlier as nothing had happened after we entered the sector. But, we are very optimistic that the government seems to be positive to the private sector," he said.
He said that the group has ambitious plans for the aerospace sector.
"We are ambitious about aerospace as we have developed a small turbo of our own. Also, we've established a manufacturing plant in Bangalore and it is making good progress," Mahindra said.
Enthused by the Budget announcement of setting up 100 smart cities, he said that the company which has a presence in the realty sector, would focus on sustainable urbanisation.
"By 2030, 59 crore more Indians will live in cities. Seventy per cent of new employment will be generated in cities. How are these millions of people going to live, with our existing cities already bursting at the seams? The obvious answer is new cities, a 100 smart cities, as the Prime Minister has declared," he said.