India's government officially opens up the defense industry to foreigns investors

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Defence & Security Industry News - India

 
 
Thursday, August 7, 2014 03:22 PM
 
India's government officially opened up the defense industry to foreign investors
According to the Wall Street Journal, India on Wednesday, August 6, opened up the defense industry to more investment by foreign firms, in a move to attract more international capital and expertise to the sectors.The South Asian nation's cabinet approved raising the maximum amount of foreign ownership allowed in military-equipment making firms to 49% from the previous cap of 26%.
     
According to the Wall Street Journal, India on Wednesday, August 6, opened up the defense industry to more investment by foreign firms, in a move to attract more international capital and expertise to the sectors.The South Asian nation's cabinet approved raising the maximum amount of foreign ownership allowed in military-equipment making firms to 49% from the previous cap of 26%.
India-based TATA Power SED at Defexpo 2014
     

The plan by India's new government to open the sectors was originally announced by the country's new finance minister, Arun Jaitley, in the national budget last month. The cabinet approval is all the proposal needed to become policy.

India is world's largest importer of military equipment as it needs to arm one of the largest military forces in the world. The higher investment cap will help it attract the investment it needs, save on foreign currency and encourage technology transfer.

India's defense industry has attracted only $4.1 million in foreign direct investment since it was first opened to foreign participation in 2001, according to government data.

 

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