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On the sidelines of the Confederation of Indian Industry’s annual general meeting on Wednesday, Commerce and Industry Minister Anand Sharma said, “I am in favour of raising FDI (foreign direct investment) in defence to at least 49 per cent, if not 74 per cent. This is what my department has recommended.”
However, on March 25, Defence Minister A K Antony had said his ministry was preparing a new procurement policy that would “aggressively” pursue indigenisation. On the commerce minister making a strong pitch to raise the FDI limit in the defence sector to 74 per cent, he had said, “Regarding other things, we are not for any hasty decision. So, at the moment we cannot take a decision hastily.”
The commerce ministry had recommended raising the FDI limit in the sector from the current 26 per cent to 74 per cent. But the proposal faced opposition from the defence ministry, which argued this could lead to security concerns.
“I assume we have the support of Indian producers. FDI of 26 per cent is definitely low. I recommended, and would continue to strive for, higher FDI in defence. There has to be a partnership between the government and industry,” Sharma said on Wednesday.
Industry favours 49 per cent FDI; 74 per cent could be against domestic commercial interests, it says.
On FDI in the multi-brand retail sector, Sharma said major global retailers, including Tesco, Carrefour, Auchan and Sainsbury, had shown interest in investing in India.
Sharma stressed that there would be no further delays for major projects and promised more action in the coming week. "There will be quick dispensation for all projects," he added.
