Breaking news
India's government officially opens up the defense industry to foreigns investors.
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Defence & Security Industry News - India |
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| 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%. |
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 India-based TATA Power SED at Defexpo 2014 |
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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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