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NEW DELHI: Despite opposition from defence minister AK Antony, the government on Tuesday decided to move ahead to increase foreign direct investment (FDI) in the defence sector from 26 per cent to 49 per cent.
However, the increase in defence FDI will be on a case-to-case basis, after clearance from the Cabinet Committee on Security .
The government has also reportedly approved increasing the FDI in the telecom sector from the present 74 per cent to 100 per cent.
The decision was taken after Prime Minister Manmohan Singh held a meeting with senior Cabinet ministers.
Finance minister P Chidambaram, defence minister AK Antony, commerce and industry minister Anand Sharma and telecom minister Kapil Sibal, were present in the meeting.
Earlier, Antony had written a letter to commerce minister Anand Sharma saying that his ministry was of the view that the FDI in defence manufacturing sector should stay at 26 per cent.
The defence minister, who has consistently pitched for growth of domestic defence industry, said that allowing foreign companies to set up manufacturing facilities will hamper growth of indigenous research and design development.
Govt allows 49% FDI in defence with conditions, telecom limit raised to 100% - TOI Mobile | The Times of India Mobile Site
However, the increase in defence FDI will be on a case-to-case basis, after clearance from the Cabinet Committee on Security .
The government has also reportedly approved increasing the FDI in the telecom sector from the present 74 per cent to 100 per cent.
The decision was taken after Prime Minister Manmohan Singh held a meeting with senior Cabinet ministers.
Finance minister P Chidambaram, defence minister AK Antony, commerce and industry minister Anand Sharma and telecom minister Kapil Sibal, were present in the meeting.
Earlier, Antony had written a letter to commerce minister Anand Sharma saying that his ministry was of the view that the FDI in defence manufacturing sector should stay at 26 per cent.
The defence minister, who has consistently pitched for growth of domestic defence industry, said that allowing foreign companies to set up manufacturing facilities will hamper growth of indigenous research and design development.
Govt allows 49% FDI in defence with conditions, telecom limit raised to 100% - TOI Mobile | The Times of India Mobile Site
