The Foreign Investment Promotion Board has rejected a proposal from the Franco-German aerospace and defence group, EADS and India’s Larsen and Toubro’s (L&T) to set up a joint venture intended to manufacture electronic warfare system, avionics and radars. Reports indicated that the proposed JV could exceed the maximum FDI limit allowed in the defence production sector. Currently, 26 per cent FDI was allowed, subject to prior approval and licensing. 1

• 1. Government of India, Ministry of Finance, ‘17 FDI proposals approved’, Press Release, December 1, 2009; Alexandra Stevenson, ‘Delhi blocks EADS proposed joint venture’, Financial Times, December 3, 2009, at http://www.ft.com/cms/s/0/34f2a840-df7b-11de-98ca-00144feab49a,s01=1.html