Finance Minister Arun Jaitley today said that Foreign Direct Investment (FDI) will be sector specific and allowed wherever it is required in the national interest.
Jaitley had announced today that the cap in Defence FDI would be raised to 49 per cent from the previous 26 per cent.
In an interview with ANI's Editor (News), Smita Prakash, Jaitley justified the decision, saying FDI in Defence is totally different from FDI in retail.
He said, "The two are totally different. In Defence, India is the biggest buyer in the world and it buys from 100 percent foreign governments and foreign companies controlled by governments of private interests. So, why shouldn't I set up Indian companies with 51 per cent Indian equity, technology, and 49 per cent coming from foreign interests. It will save foreign exchange, defence equipment will be procured and jobs will be created."
"But in retail, if a structured foreign retail sells Chinese goods, then the manufacturing sector will suffer and retail establishments by Indians would also shut down," he added.
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When asked about the fiscal deficit, which is likely to stay at 4.1 percent this year, he said that he would try to reach that difficult target.
"I am accepting this 4.1 per cent figure as a challenge. Some people have felt that this figure is unrealistic and difficult. I don't mind trying to reach that difficult and daunting target, but I don't want to give up that fight. I'll try till March 31 this year (fiscal), and try and reach that target," Jaitley said. (ANI)
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