Union Cabinet gives nod to increase FDI in defence sector to 49%

The Union Cabinet cleared a proposal to enhance the Foreign Direct Investment (FDI) limit in defence sector to 49% from the current 26%.
The step is aimed at boosting domestic defence industry of the country that imports up to 70% of its military requirements.
In the Budget 2014-15, it was proposed to hike the composite limit of foreign investment to 49% to be approved through the Foreign Investment Promotion Board (FIPB) route and with control of the enterprise to be in Indian hands.
At present, the government allows 26% FDI in defence manufacturing.

Month: Current Affairs - August, 2014