DEFENCE FDI 3LST

"Allowing 74 per cent FDI looks desirable in the
non-strategic sector. The (Industry) Ministry will have to be
cautious while allowing it in the strategic sector," said Deba
Mohanty, Senior Research Fellow with private think tank
Observer Research Foundation.
Industry body CII had earlier said that over half of its
members were for increasing FDI only up to 49 per cent and
that too subject to conditions, including vesting of
intellectual property rights of the production technologies
with the Indian joint venture partner.
The Commerce Ministry, however, said in the discussion
paper that "there is, therefore, an urgent need to enhance the
deterrent and the operational capabilities of the armed
forces..."
Since the entire issue has been placed in the public
domain, the DIPP clarified that the suggested policy should
not be construed as the firm views of the government and
sought feedback by July 31.
ORF's Mohanty said that apart from security related
issues, there were a whole set of other issues such as
protecting the interests of Indian private and public sector
companies. PTI