‘Raise FDI cap in defence to 49%’

Assocham Secy said,raising FDI limit will enable India to acquire self-reliance in production.

The government should raise the FDI limit in the defence sector to 49 per cent from the current 26 per cent,for enabling indigenisation and access to the latest technology,an industry chamber has said.

“Raising the foreign direct investment (FDI) limit in the defence sector to 49 per cent will enable India to acquire self-reliance in defence production and allow foreign firms a larger share of risks and profits,” Assocham Secretary General D S Rawat said.

Also,it will give confidence to transfer sensitive technologies to joint ventures in India,he added.

Story continues below this ad

Besides,the chamber asked the government to support setting up of Special Economic Zones (SEZs) for the defence sector,aimed at expanding manufacturing activities in the country thus boosting the exports.

“Incentives may also be given to establishments in such SEZs to boost exports to the neighbouring countries,” it said in a suggestion made to the working group on defence and aerospace industry,under the Planning Commission,for the 12th Five-Year Plan (2012-17).

Further,it said,the government may consider an option of providing 25 to 30 per cent reservation to SMEs in defence orders,under the proposed Micro,Small and Medium Enterprises Procurement Policy.

To increase focus on research and development (R&D) in the sector,Assocham said,”A dedicated fund of Rs 400 crore should be created to support R&D by the private sector.”

Tags:
Assocham

Sushila Karki: Nepal’s first woman CJ — and now potentially its first woman PM

World3 hr ago

Nepalese jurist Sushila Karki, known for her anti-corruption stance, is a strong contender for interim prime minister. Despite lacking political experience, she has gained support from Gen Z protesters. The recent protests were triggered by a social media ban, but issues of corruption, economy, and joblessness have been simmering. Karki could make history as Nepal's first female prime minister.

View all shorts

Live Blog