NO TO 100 % FOREIGN DIRECT INVESTMENTS IN DEFENCE PRODUCTION

The Government is not planning to make provision for 100 percent Foreign Direct Investment (FDI) in defence production sector. No request for permitting 100 % FDI has been received from L&T, TATAs, Mahindra and Punj Lloyds.





As per extant rules, FDI upto 26 % is permitted in Defence sector, subject to FIPB approval. This policy was arrived at taking into account the sensitive nature of the Defence Sector.



This information was given by Minister of State for Defence Shri MM Pallam Raju in separate written replies to Shri Prabhat Jha and Shri NR Govindarajar in Rajya Sabha today.





PK / RAJ                  source;pib