Security concerns over raising defence FDI will be taken care of: Jaitley

FDI in the defence sector was raised to 49% in the Union Budget

Defence Minister Arun Jaitley today said all security concerns related to the raising of the cap on foreign investment in defence will be taken care of, and added that a security manual has been prepared for private sector defence item manufacturing units.

In a written reply to Dr. Bhalchandra Mungekar in Rajya Sabha, Jaitley said: "Since defence companies having foreign investment will have Indian management and control and foreign investment in such companies will be approved through FIPB route, security concerns are duly taken care of.

"Besides, the Government has also finalized and put in public domain a security manual for private sector defence manufacturing units," he added.

He further said: "No data relating to names of the countries which have allowed 100%  FDI in their respective Defence sector is available / maintained in the Ministry of Defence."

In the Union Budget 2014-15, it has been announced that the composite cap of foreign exchange is being revised to 49% with full Indian management and control through FIPB route for defence sector.