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

[janon]

The government has increased the limit for Foreign Direct Investment or FDI in defence to 49% from 26%, despite objections raised recently by Defence Miniser AK Antony.

The new policy will be applied on "a case-by-case basis," said government sources, stressing that the focus will be on acquiring state-of-the-art technology.

FDI in telecom has been raised to 100%, as suggested recently by the Telecom Commission.

Government hikes FDI in defence to 49%, 100% for telecom | NDTV.com

 

[neehar]

good our telecom services are becoming lazy .they need some good competetion..and we'll get some good offers too

 

[SRP]

Good news.

 

[AADHAAR]

Good Decision.

 

[special]

FDI in defense is not very good move.

 

[AUSTERLITZ]

I'm not an export on economy,what are the implications of this?

 

[janon]

FDI in defense is not very good move.

It is already there in defence, they are increasing the percentage. It is needed so that foreing defence companies will manufacture more stuff in India, rather than India directly importing from them.

Saves us money, gives us experience and technology, and creates jobs for Indian workers as opposed to foreign ones.

I'm not an export on economy,what are the implications of this?

It means that foreign companies will be allowed to invest in India. Very good move, since Indian companies don't have the necessary know-how or experience, and they will be able to tie up with foreign firms. And more defence manufacturing done in India, rather than direct imports.

 

[Dash]

A long awaited move!!!.....But it has come at the right time..

 

[SRP]

New Delhi: The government has increased the limit for Foreign Direct Investment or FDI in defence to 49% from 26%, though the new policy will be applied selectively with the focus on acquiring state-of-the-art technology, said government sources


Last month, the Defence Minister AK Antony wrote to Commerce Minister Anand Sharma who had been lobbying for more foreign investment in the sector. Mr Antony argued that India "cannot afford to be dependent on foreign companies and vulnerable to policies of their countries of origin". However, he had agreed that, "decisions can be taken to allow higher FDI on a case to case basis by the
Cabinet Committee on Security."

To justify his opposition to the proposal to hike the FDI cap in
The defence sector, Mr Antony had said, "Building up our own indigenous
capabilities for designing and developing weapon systems is
vital."

The Defence Ministry has been burnt recently by allegations of mega-corruption in a deal -now suspended - to buy 12 Agusta Westland helicopters from an Italian manufacturer for VVIPs. Mr Antony responded by drastically changing policies for buying equipment from foreign companies. The private sector in India, he has said, will be incentivized to develop and acquire critical technology to cater to the requirements of the Indian Armed forces.

The PM and Finance Minister have repeatedly said that they plan to introduce more reforms to boost foreign investor confidence and resuscitate the sluggish economy.
FDI in telecom has been raised from 74% to 100%, as suggested recently by the Telecom Commission, an inter-ministerial body.

49% FDI cleared for defence with conditions, 100% for telecom - NDTVProfit.com

 

[Splurgenxs]

Can anyone give some cons of controlled FDI in defense manufacture? Apart from increased competition that is.

I wana know what out dear Defence minister is thinking apart from being lobbied from the likes of HAL.

 

[HK Indian MBT]

Friends its been a long time we kept hearing about FDI in Defence . Is it good or Bad . Can any wxplains Pros and Cons plz ?

 

[Echo_419]

Finally can someone explain is it good or bad

 

[kena]

100% FDI in telecom is a security nightmare.

 

[anant_s]

Unless the likes of HAL, DRDO etc are pushed to make them earn their money, situation is not going to improve upon much. If we really want to see Indian defence industry grow and mature, we should have courage to look beyond govt aided/run agencies. Points like exports are not that important now.
its a late begining but a good move!

 

[acid rain]

I'm not an export on economy,what are the implications of this?

Local research in defense development will be effected, stake holders will bring in already researched and developed products for production.

Defense production will lose its nationalistic flavor and will become sales and business oriented which will bring in its own set of problems like corruption, under hand tactics, sly cost cutting for companies to make produucts more price competitive. Corruption and influence at all levels - politicians, defense personnel, govt depts, MOD, media all will look to get a piece of the pie.

Upside is, our neurotic and snail paced Ordinance factories, DRDO etc will lose their relevance and might become more competitive or become irrelevant.

Another upside is boost in defense industry, research done locally, more knowhow will be shared, and our forces will receive more choices and on time deliveries.