A year after the Industry Ministry put out a discussion paper on increasing foreign direct investment in defence production to 74 per cent,it has not been able make a concrete proposal for the Cabinet.
“Defence is a strategic subject. There have been brainstorming sessions. There has been no formal proposal which has been moved,” Commerce and Industry Minister Anand Sharma told PTI.
At present, foreign direct investment (FDI) upto 26 per cent is allowed in defence production.
Senior Ministers including Finance Minister Pranab Mukherjee, Home Minister P Chidambaram, Defence Minister A K Antony and Sharma have been meeting over the issue, but no consensus seems to have emerged on increasing the FDI ceiling in the sensitive sector, sources said.
