NEW DELHI: A top Indian Air Force officer Wednesday sought a rethink over government’s policy to have 26 per cent FDI in military sector, saying it was not attractive for foreign vendors.
As per the FDI policy, there is a cap of 26 per cent on FDI in defense sector.
“Now we have allowed 26 per cent FDI in defense sector. I do not think it is attractive for the foreign industry. Why do we restrict FDI, we need to ponder over it,” IAF’s Director General, Flight Safety, Air Marshal PP Reddy said.
He was addressing a CII conference on energizing aerospace sector in the country.
There have been several attempts in the recent past from within the Government to raise FDI limit in defense sector from 26 per cent to 49 per cent but Defense Minister A K Antony has taken a strong stand on the issue and not allowed it to be increased.
Talking about the opportunities for Indian defense sector, Reddy said India would spend Rs 9 lakh crore in next 15 years on modernization of armed forces.–PTI
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