New Delhi: In a far-reaching policy decision, the Modi Cabinet took off the cap on FDI in Defence. This will open the door for global Defence giants to set up manufacturing units in India, instead of going in for prohibitively expensive Defence purchases. This will offer avenues for a technology leap as well as saving precious foreign exchange. Of course, Defence purchases have been a major source of scam. Â Â Â
Following the Cabinet note, Minister of State for Commerce & Industries Minister (Independent charge), Nirmala Sitharaman has approved the hike in FDI cap in Defence to 100%, say sources.
Currently, the FDI cap in Defence is 26%. The UPA regime was reportedly strictly opposed to hiking the FID cap to 100 per cent.
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