Congress leader and former information and broadcasting minister Manish Tiwari on Friday said hundred percent FDI in defense is possible conceptually after proper filteration. “May I respectfully point out that as things stand today, conceptually it is possible to have 100 percent FDI in defense after appropriately filtering it, because of the national security imperative involved. 26 percent is on the automatic route. 49 percent is with the approval with the Foreign Investment Promotion Board. And after that it is with CCS (Cabinet Committee on Security) approval. If you look at the Brahmos project, the Russian joint venture partner holds more than 50 percent equity,” Tiwari said. He however, called for reviewing the government proposal in order to say it correctly if this move will pull the foreign manufactures in defense to invest in India. “One will really have to wait and see as to how the Government fleshes out the proposal. What is the meat that they put on the proposal. What is it that is going to be different from the regime in place to really make an assessment as to whether this policy change is going to incentivize defence manufacturer to come to India,” Tiwari added. An Economic Times report had stated that the Department of Industrial Policy and Promotion (DIPP) has prepared a draft cabinet note that proposes to allow up to 100 per cent foreign direct investment in defence as part of its plan to boost domestic manufacturing. The move comes two days after Nirmala Sitharaman took charge as Commerce and Industry Minister. Defence Minister Arun Jaitley had indicated on Tuesday after taking charge of the ministry that he would consider the issue of FDI in the sector. Currently, only 26 per cent FDI is allowed in defence manufacturing, though the government can clear more foreign investments on a case-to-case basis. (ANI with inputs)
