Industry Bats For FDI In Defence

The Confederation of Indian Industries (CII) has welcomed the central government's move to raise the limit on foreign direct investment (FDI) in the defence sector.

"FDI is directly linked with core national priorities such as raising manufacturing growth to 25% of the GDP, significant job creation and bringing high-end technology into the country. The associated benefits are the spin-offs for the civilian market,” a CII statement said.

CII is keen to see high-tech system integration work being done in India and it is ready to take this challenge and opportunities. Opening up various sectors have helped the growth of industry.

The manufacturing sector in the country has grown in the last two decades, riding on robust domestic demand and increasing private participation. India has already made its mark in the automobile sector with a number of auto brands across the world sourcing from India, the statement said.

At present, the defence sector contributes between 2.5% and 3% of the global GDP but India's share is too low. India can leverage its purchasing power, IT infrastructure and manufacturing potential to be one of the key global manufacturing hubs for defence systems and equipment, the CII noted.

Raising FDI in the defence sector will create more opportunities in the country. CII said it would endorse the government's initiatives of linking FDI with exports. It also stressed on the need to revisit the export policy and recommended that policies should be industry-friendly and less ambiguous.