CII welcomes cabinet approval to increase FDI in Defence

CII welcomes the cabinet's approval to increase FDI limit in Defence from 26 to 49 per cent with full Indian management and control.

"This is a historic moment for the Indian industry to collaborate with the foreign Original Equipment Manufacturers (OEMs) and create state of the art platforms and solutions in India. This would definitely encourage MNCs to get into co-development and co-production arrangements with Indian companies. Capital and Technology are the two important aspects of advanced manufacturing. With this move, the Government of India (GoI) has made its intentions clear to the world that we mean business and job creations in India. Development of technologies in India would also mean that Intellectual Property Rights can reside in India." said Chandrajit Banerjee, Director General, CII.

"We expect that the SMEs who are struggling to sustain their businesses, due to the lack of capital and cash flows, would benefit in particular," Banerjee added.