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Govt likely to allow over 49% FDI in defence

The Indian Government is working on FDI norms for defence production, where foreign investment more than 49% would be allowed. Earlier investment up to 49% would be allowed via the automatic route and a higher stake would be permitted on a case-to-case basis if a state-of-the-art product was being brought in with access to technology. The expansion presume worthy as French defence major DCNS has approached the government with a 100 % FDI proposal to bring Air Independent Propulsion (AIP) systems in the country. The department of defence has held a few round of consultations with other ministries and also discussed the issue with stakeholders. Shortly a standard operating procedure (SOP) is proposed to be out for cases, where majority foreign ownership is proposed.

Source:http://timesofindia.indiatimes.com/business/india-business/Govt-set-to-allow-over-49-FDI-in-defence/articleshow/51950947.cms

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