The Economic Times
12,180.3573.45
Stock Analysis, IPO, Mutual Funds, Bonds & More

Budget 2014: Raising FDI in defence will harm national security, says A K Antony

Antony today said that previous governments had overcome the "pressure tactics" of "lobbies" working for 100 per cent FDI in the key area.

PTI|
Updated: Jul 10, 2014, 07.06 PM IST
0Comments
Antony today said that previous governments had overcome the "pressure tactics" of "lobbies" working for 100 per cent FDI in the key area.
Antony today said that previous governments had overcome the "pressure tactics" of "lobbies" working for 100 per cent FDI in the key area.
NEW DELHI: Attacking the NDA government for raising the FDI limit to 49 per cent in the defence sector, former Defence Minister AK Antony today said that previous governments had overcome the "pressure tactics" of "lobbies" working for 100 per cent FDI in the key area.

"I know a very strong lobby is working. Their demand is 100 per cent FDI in defence. Successive governments since 1991 have overcome such pressure tactics. Their decision not to grant FDI beyond 26 per cent in the defence sector was well thought out," said the senior Congress leader.

As part of the previous UPA government, Antony shot down several proposals from the Commerce Ministry to raise the FDI limit and stuck to the stand of allowing only up to 26 per cent foreign investment in the military-industrial sector.

Coming down heavily on the Narendra Modi government, Antony said that "the proposal to increase FDI from 26 per cent to 49 per cent in defence production will harm our national security".

While presenting Union Budget 2014-15, Finance Minister Arun Jaitley said that India is the largest buyer of defence equipment in the world and its domestic manufacturing capacities were still at a nascent stage. The country meets a substantial part of its defence requirements by buying directly from foreign players.

Antony said that with this decision, gradually all the defence manufacturing companies in India will come under the control of foreign multi-national companies, which are in turn controlled by the big powers.

"Hitherto, India was following an independent foreign policy and strategic independence and we scrupulously avoided joining any of the military blocks even though we are friendly with almost all the important countries.

"We have always taken special care to see that we are not aligning with any military block," he added.

Antony said that the increased FDI limit would allow foreign powers to interfere indirectly in Indian joint venture defence partnership programmes with powerful countries.

Also Read

Cloud kitchens on boil as DPIIT checks FDI compliance

India hopes to continue FDI growth story in 2020

FDI limit in insurance companies may rise to 74%

Government approves up to 100 per cent FDI in Bharti Airtel

US seeks more relaxation in India FDI policy

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service