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Defence Ministry rules out hiking FDI immediately
21 May 2010: The Union Ministry of Defence has now ruled out for any change in the defence production policy to raise the FDI from the existing 26 per cent to 100 per cent as suggested by the Union Ministry of Commerce recently.
Initially there was 100 per cent monopoly of Public Sector Undertakings (PSUs) in the defence sector, but that policy was changed over the last decade to first allow 100 per cent private participation and later permitting 26 per cent FDI in the defence industry.
But the 26 per cent FDI policy notwithstanding, the Defence Ministry will consider allowing more than the prescribed FDI in the sector “on a case-to-case basis,” according to sources.
Source: Hindu Business Line