Article Posted on : - Jun 14, 2011

BrahMos celebrated 10 glorious years of first supersonic launch on Sunday.

NEW DELHI (BNS): The Indian government should raise the cap in FDI in defence sector from the present 26 percent to 100 percent for a better technology transfer, experts said while addressing a conference on Public-Private Partnership and JVs, at BrahMos Headquarters.

“The inflow of Foreign Defence Investment (FDI) in defence sector will provide substantive economic advantage to Indian defence sector, and the current percentage of FDI (26%) is not sufficient to attract foreign corporation in India,” RS Bhatia, CEO-Defence, Bharat Forge Ltd, said in the conference.

Increasing the FDI cap will allow the foreign firms a larger share of the risks and profits and the confidence to transfer sensitive technology to joint ventures in India.

“We have to find proper means and policies to increase the FDI percentage for the Indian defence sector for producing high technology defence equipment,” A S Pillai, CEO & MD of BrahMos Aerospace said.

The increase in FDI limit will lead to indigenous capability building and technology transfer to India.