Government hikes FDI in defence to 49%, 100% for telecom

[acid rain]

100% FDI in telecom is a security nightmare.

Everything gets regulated by TRAI, 100% FDI in this sector might only be approved from NRI's only.

 

[HK Indian MBT]

Will we see New Fighter Jet programs too ? WIth 49% of FDI ?

 

[SRP]

Will we see New Fighter Jet programs too ? WIth 49% of FDI ?

We have enough fighter jet programs going on. So no need to take of another program.

 

[HK Indian MBT]

We have enough fighter jet programs going on. So no need to take of another program.

We can expect AMCA from Private Players. As per ADA AMCA will be inducted only by 2032 . Dont you think its good ?

 

[SRP]

We can expect AMCA from Private Players. As per ADA AMCA will be inducted only by 2032 . Dont you think its good ?

After induction of LCA, AMCA going to be the top priority of ADA/DRDO. Our private players are incapable of building a jet trainer let alone fighter of a class(5th gen). It will take time to mature them in this field.

 

[HK Indian MBT]

After induction of LCA, AMCA going to be the top priority of ADA/DRDO. Our private players are incapable of building a jet trainer let alone fighter of a class(5th gen). It will take time to mature them in this field.

Yes after LCA AMCA will be top priority But Its deadline is 2032. Why to waste nearly 20 years ? Now we got 49% FDI Our private players like Tata can afford the money by which they can buy technology too. Example is howitzers When DRDO cant come up with Indian Made ,Private company already produced one and waiting for govt nod for testing .

 

[acid rain]

Yes after LCA AMCA will be top priority But Its deadline is 2032. Why to waste nearly 20 years ? Now we got 49% FDI Our private players like Tata can afford the money by which they can buy technology too. Example is howitzers When DRDO cant come up with Indian Made ,Private company already produced one and waiting for govt nod for testing .

No, no private firm will invest moneey in products that will take 10 years to mature, they will only get orders on completion so they will need to pump money for 10+ years without a clue of if the end product will be a success or failure or will generate profits.

They'll look for off the shelf products to start with so that they can make money now.

only after a few decades and with a lot of experience and knowhow will they go for big ticket items research.

This is because they are answerable to their shareholders every year. India is quite late on the band wagon so dont expect miracles out of this.

 

[kena]

Everything gets regulated by TRAI, 100% FDI in this sector might only be approved from NRI's only.

TRAI only fixes tariffs. Investment decisions are by FIPB. But how diligent can you get when there is no Indian on the Board. What happens if China gets an important stake and we have war with China?

 

[SRP]

Yes after LCA AMCA will be top priority But Its deadline is 2032. Why to waste nearly 20 years ? Now we got 49% FDI Our private players like Tata can afford the money by which they can buy technology too. Example is howitzers When DRDO cant come up with Indian Made ,Private company already produced one and waiting for govt nod for testing .

From where did you find the deadline is 2032 ? AMCA today does not have a formal approval from MOD. You are comparing a NG fighter with a howitzer? Do not you think what technologies we get from Rafale deal, FGFA deal is going to incorporate in AMCA in future? Who is going to give this sensitive technologies to Indian private players?

 

[Ayush]

good move.

 

[HK Indian MBT]

From where did you find the deadline is 2032 ? AMCA today does not have a formal approval from MOD. You are comparing a NG fighter with a howitzer? Do not you think what technologies we get from Rafale deal, FGFA deal is going to incorporate in AMCA in future? Who is going to give this sensitive technologies to Indian private players?

Dude check my thread. I posted it too. Its official. 2032 . 1st AMCA induction. And i just pointed out Howitzer as an example. Where Indian PSU cant come up with good one when Private Company can. Its needs a broader mind

 

[acid rain]

TRAI only fixes tariffs. Investment decisions are by FIPB. But how diligent can you get when there is no Indian on the Board. What happens if China gets an important stake and we have war with China?

Its not an open tender system, it clearly says approvals are going to be on a case to case basis, though you are right, anyone can have a front. But how does a 50:50 split help to avoid? it all boils down to ethics..

 

[Bang Galore]

TRAI only fixes tariffs. Investment decisions are by FIPB. But how diligent can you get when there is no Indian on the Board. What happens if China gets an important stake and we have war with China?

What happens? The Chinese will need to worry about their investment. Indian agencies will still exert full control. 74 to 100 makes no difference.

 

[SRP]

Dude check my thread. I posted it too. Its official. 2032 . 1st AMCA induction. And i just pointed out Howitzer as an example. Where Indian PSU cant come up with good one when Private Company can. Its needs a broader mind

Can you provide that link? Private players are not mature enough to work on this kind of project. They can only buy of the shelf products and sell it to our armed forces. Can you answer me who is going to give such sensitive technologies to Indian private players who have no accountability to govt?

 

[Guynextdoor2]

Finally ! The govt decides to show some ball$

List of FDI decisions:

FDI cap in telecom raised to 100 percent from 74 percent; up to 49 percent through automatic route and beyond via FIPB.

• No change in 49 percent FDI limit in civil aviation.

• FDI cap in defence production to stay at 26 percent, higher investment may be considered in state-of-the-art technology production by Cabinet Committee on Security (CCS).

• 100 percent FDI allowed in single brand retail; 49 percent through automatic, 49-100 percent through FIPB.

• FDI limit in insurance sector raised to 49 percent from present 26 percent, subject to Parliament approval.

• FDI up to 49 ppercent in petroleum refining allowed under automatic route, from earlier approval route.

• In power exchanges 49 percent FDI allowed through automatic route, from earlier FIPB route.

• Raised FDI in asset reconstruction companies to 100 percent from 74 percent; of this up to 49 percent will be under automatic rout

• FDI limit increased in credit information companies to 74 percent from 49 percent.

• FDI up to 49 percent in stock exchanges, depositories allowed under automatic route.

• FDI up to 100 percent through automatic route allowed in courier services.

• FDI in tea plantation up to 49 percent through automatic route; 49-100 percent through FIPB route.

• No decision taken on FDI cap in airports, media, brownfield pharma and multi-brand retail