No plans to hike FDI cap in India defence sector-min


India has no plans to raise the foreign direct investment ceiling in the defence equipment sector, Defence Minister A.K. Antony told parliament in a written reply.

In May the trade ministry had suggested the cap in the sector be raised to 74 percent from the present 26 percent, a change which would crowd out many local companies from the lucrative defence equipment market.

India has the world’s tenth largest defence budget but imports 70 percent of its needs.