New Delhi: Raising the FDI limit in the defence sector will help the country in creating jobs and being self-reliance in the military arena, Information and Broadcasting Minister Prakash Javadekar said on Friday.
"I have been a member of Standing Committee on Defence and based on my experience, I can say that instead of importing 100 per cent equipment, we can build them here which will bring investment and create jobs," he said after taking over as Minister of State for Parliamentary Affairs.
His remarks came after the Commerce and Industry Ministry circulating a Cabinet note for inter-ministerial consultations to raise FDI limit in defence sector to 100 per cent through the approval route. The proposal to raise FDI cap in defence from 26 per cent to 100 per cent is aimed at giving a boost to the manufacturing activities. As per the 15-page Cabinet note, which was circulated today, portfolio investors, including FIIs, would be permitted to invest only up to 49 per cent.
Javadekar said that the Government wants to see the country "producing weaponry and all modern equipments. So, whatever is necessary in this regard, it has to be considered. We are eager to see India modernise its weaponry and self-sufficient in these matters."
He said that whether to allow 100 per cent FDI, "some decision has to be made by the commerce ministry and some decision has to be taken by the Cabinet." The Defence Ministry under the UPA government was opposed to hiking FDI in defence sector from 26 per cent but with change in guard, it is expected to agree to the latest proposal.
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