UNSTARRED QUESTION NO 1009 FDI IN DEFENCE PRODUCTION

Question: Will the Minister of DEFENCE be pleased to satate :-

a) whether the Government proposes to set up the military manufacturing hub in Special Economic Zone (SEZ) in the country;

(b) if so, the details thereof, State-wise;

(c) whether the Government proposes 100 per cent Foreign Direct Investment (FDI) in defence units located in such SEZ;

(d) if so, the details thereof along with the reasons therefor; and

(e) the steps taken by the Government to avert its adverse impact on indigenous defence production?

Answer: Minister of Defence (Shri A.K. Antony)

(a) & (b) There is no such proposal with this Ministry.

(c) to (e) FDI up to 26% is permissible in the defence sector. However, wherever FDI beyond 26% is likely to result in access to modern and state-of-the-art technology into the country, decisions can be taken to allow higher FDI on a case-to-case basis, with approval of the Cabinet Committee on Security.