India should increase FDI limit in defence: UK

NEW DELHI: Britain on Friday suggested that India should raise its Foreign Direct Investment (FDI) limit in defence sector up to 49 per cent.

The suggestion came from Creon Butler, Deputy British High Commissioner who was speaking at a seminar organised by a industry body CII.

At present, New Delhi allows only 26 per cent FDI in the defence sector. Echoing such demands from the European industry, the British diplomat said in the years to come the defence sector in India is expected to see significant jump.

India plans to make its defence offset policy open, transparent and less rigid and ensure bigger participation of private players in defence equipment business.

Defence Production Secretary Pradeep Kumar said, "This symposium will provide the UK a platform to understand our Foreign Direct Investment (FDI) policy in the defence sector."

India has gradually liberalised its defence trade by allowing 100 per cent private investment by domestic companies and increasing the number of licences granted to private players. Our defence equipment companies are competitive and global biggies are outsourcing their work to Indian firms," said Kumar.

Kumar expressed confidence that this symposium will provide us an opportunity to understand the eastern and the western perspectives on defence, explore joint ventures and further strengthen India-UK ties.