Q. No. 370 Impact of FDI in defence sector on national security

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

(a) whether as per recent policy decisions, more than 26 per cent FDI will be allowed in Defence, subject to approval from the Cabinet Committee on Security; and

(b) the possibility of this step compromising vital national defence information by providing the same to foreign firms?

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

(a) FDI up to 26% is permissible in the defence sector, subject to licensing. 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.

(b) All such concerns shall be addressed while taking approval from Cabinet Committee on Security on a case-to-case basis.