Government initiates exercise to raise FDI in defence sector to 100% - The Economic Times
NEW DELHI: In a major policy initiative, the government is proposing to raise FDI in defence sector to 100 per cent through the approval route.
"The Commerce and Industry ministry has circulated a Cabinet note for inter-ministerial consultation," sources told PTI.
The proposal to raise FDI cap in defence from 26 per cent to 100 per cent is aimed at giving a boost to the manufacturing activities.
As per the 15-page Cabinet note, which was circulated today, portfolio investors, including FIIs, would be permitted to invest only up to 49 per cent.
Further, the note said that a foreign company can even take over a domestic entity provided it brings in state-of-the art technology.