After opening the gate of Indian Defence industry to foreign investment and allowing 100 per cent Foreign Direct Investment in the field would enable to produce and designed “state-of-art” technology within the country, senior government minister said today.
Deputy Defence Minister, Mr. Rao Inderjit Singh who was interacting with media person at Vikas nagar this morning stated that the Union Government radically liberalized FDI regime in Defence aiming to manufacture “state-of-art” technology defence equipment.
He said that with the allowing of FDI in the defence it would make India self-reliant in the new defence equipment and its design.
The defence equipment designed indigenously did not compete with the foreign technology and designs however if the investments would come from outside it would also generate employment and job creation in the country.
We could not be design and developed domestically due to lack of skills, technological innovation and lack of interest by local industrialists to spent money on its design and development (R&D). Bringing up the 100 FDI would help the foreign investors to come forward to design and develop defence equipment as India has massive manufacturing potential.
Decision to further enhancing FDI in defence (from 49 PC) has been taken by the Union Government as Indian investors were not keen to come forward in the defence investments.
“‘We have the best and enough capacity to manufacture defence equipment however design and developments capability are not up to the mark. Our corporate and Industrialists are avoiding to invest on the Research and Development of new Defence equipment designed.” Mr. Rao said in side lines of International Yoga day function held today.
FDI have been allowed to increase it cent per cent as the officials weigh the impact of foreign owners commanding access to ‘state-of-art’ technology in the country.
In February last year, Indian Deputy Defence Minister Mr. Rao Inderjit Singh informed parliament that a revised FDI Policy in the defence sector was in the work, requiring approval from the Cabinet Committee on Security (CCS) in the case of foreign ownership exceeding 49 per cent.
Defence experts says that India import 70 Per Cent armament for its military needs and move would also help to decrease dependence on imports helping to rein rising import expenditure on the defence.