FICCI opposes FDI increase in Defence sector

FICCI opposes FDI increase in Defence sector  While there have been debates on upping the FDI in the Indian defence sector for the past many months now but the Industry chamber FICCI has recently said that it is not in the favour of raising the foreign direct investment (FDI) cap in defence saying the existing limit of 26 per cent has attracted sufficient investment in this strategic sector.

In fact, the secretary general of the industry chamber Amit Mitra said that the 26 per cent FDI cap in the defence sector has already attracted top overseas defence OEMs and hence any additional raise in the sector will require additional thinking and analysis of the situation.

Moreover, Mitra also pointed out the fact that a condition of 49% FDI in the defence sector is only possible with a set of conditions in place. It is to be mentioned here that players like BAE, EADS, Sikorsky, Lockheed Martin, Electtronica Defence Systems etc have already firmed up plans to heavily invest in the defence sector of the India. Moreover, CII too had expressed concerns against more than 49 per cent FDI in the sector recently.