Retain 26 percent FDI cap in defence manufacturing: FICCI

New Delhi, July 26 (IANS) A leading industry lobby Monday cautioned against raising the 26 percent cap in foreign direct investment, saying a decision on this ‘will require careful thinking and analysis’.

‘The 26 percent FDI cap in the defence sector has already attracted top overseas defence OEMs (original equipment manufacturers) like BAe, EADS, Sikorsky and Lockheed Martin to hugely invest in India’s defence sector. Therefore, any increase in FDI cap in a strategic sector like defence will require careful thinking and analysis,’ the Federation of Indian Chambers of Commerce and Industry said.

Instead, it suggested a series of measures ‘to facilitate a robust and qualitative growth’ of the Indian defence industry, among them the creation of verticals ‘that are self-sufficient, self-reliant and export capable and across industry sectors (public and private)’.

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