Top IAF officer PP Reddy seeks rethink over FDI policy in defence

NEW DELHI: A top IAF officer today sought a rethink over government's policy to have 26 per cent FDI in military sector, saying it was not attractive for foreign vendors.

As per the FDI policy, there is a cap of 26 per cent on FDI in defence sector.

"Now we have allowed 26 per cent FDI in defence sector. I do not think it is attractive for the foreign industry. Why do we restrict FDI, we need to ponder over it," IAF's Director General, Flight Safety, Air Marshal PP Reddy said.

He was addressing a CII conference on energising aerospace sector in the country.

There have been several attempts in the recent past from within the Government to raise FDI limit in defence sector from 26 per cent to 49 per cent but Defence Minister A K Antony has taken a strong stand on the issue and not allowed it to be increased.

Talking about the opportunities for Indian defence sector, Reddy said India would spend Rs 9 lakh crore in next 15 years on modernisation of armed forces.