Arun Jaitley allows foreign investment of up to 49 percent, a 23 percent increase; ownership to stay with Indian company
India’s private sector business has been split on the issue of FDI in defence manufacturing in recent years. While some corporate groups have been in favour of higher FDI, others like L&T feel that the Indian companies should be strengthened by giving them more (and meatier) defence contracts. Finance Minister Arun Jaitley took the middle ground in the Union Budget on Thursday, by allowing foreign investment of up to 49 percent, up from 26 percent, with the ownership staying with the Indian company.