Defence minister AK Antony unequivocally ruled out 100% foreign direct investment (FDI) in defence production, as suggested in a paper circulated by the department of industrial policy and promotion (DIPP).
?At the moment it (policy on FDI in Defence) is 26%. Our defence production policy (DPP) is evolving over the years. But at the moment we feel Indian defence sector is not matured enough…not ready to absorb more FDI in defence sector. We feel that time is not right to further expand it,? Antony said media persons on the sidelines of the Navy Commanders Conference in New Delhi on Thursday.
According to the minister initially, there was 100% monopoly of Public Sector Undertakings (PSUs) in the defence sector, but that policy was changed over the last decade to first allow 100% private participation and later permitting 26% FDI in the defence industry.
However, the 26% FDI policy notwithstanding, the defence ministry will consider allowing more than the prescribed FDI in the sector ?on a case-to-case basis,? the minister said.
?Ultimately, forever I cannot rule out (higher FDI). On a case-by-case basis, we will allow more FDI in defence sector,? he said.
