Higher FDI in defence sector to attract MNCs, give 'Make in India' a boost

The local companies will be at a disadvantage if they don't' get orders from the government

The increase in foreign direct investment (FDI) in defence sector to 74 per cent will encourage multinationals to set up manufacturing bases in India or acquire local companies but will hit hard the local companies who do not have any access to technology or government orders.

“Without giving an opportunity to the Indian private sector, the government has offered Indian contracts on a silver platter to foreign companies”, said the head of an Indian defence company on the condition of anonymity.

“The government had announced Make in India six years ago but since then no major defence contracts went to