Finance minister Arun Jailtley today opted for a restrained approach to limit foreign Direct Investment in Defence manufacturing to 49% without control from the existing cap of 26%. Ultimately, this does not make any material change and may not be enough incentive for foreign firms to bring in investments and proprietary technology.
PwC India
Finance minister Arun Jailtley today opted for a restrained approach to limit foreign Direct Investment in Defence manufacturing to 49% without control from the existing cap of 26%. Ultimately, this does not make any material change and may not be enough incentive for foreign firms to bring in investments and proprietary technology. However, on a more positive note, allowing investment by FIIs is a pragmatic step which will remove uncertainty and provide added flexibility and opportunities for raising finances to listed Indian companies. Increasing the defence capital budget by INR 5000 Crores is encouraging considering the number of contracts which are pending with the Ministry of Defence.
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Budget 2014: FDI in defence to not make any material change - PwC India
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