Cabinet may ease rules for FDI in defence production
04 Nov 2008
New Delhi: The Government of India will consider relaxing rules for foreign direct investment in defence production, commerce and industry minister Kamal Nath said today. The minister said the issue would be taken up by the Union Cabinet in the near future.
Speaking to the media, Nath said, "India can become a great manufacturer of defence items. So, we will like to see some easing up there." He was sap eking at he sidelines of a meeting organised by business chambers with visiting Belgian King Albert II.
He said the government was going to consider various options to provide new thrust to the manufacturing sector and this would include streamlining procedures for FDI. Currently, the government allows 26 per cent FDI in the defence sector.
Nath also said that despite disruptions in the global economy, India continued to attract FDI and the target of $35bn for 2008-09 fiscal would be achieved.
He pointed out that fro the month of September, FDI inflows were up 259 % to $ 2.56bn, as against $713mn in the same month last year.
For the period April-September 2008, inflows were up $17.21bn, from $7.25bn in the comparable period a year ago. This marked a rise of 137%.