Sharma pitches for higher FDI cap for defence sector

 Commerce and Industry Minister, Anand Sharma, Wednesday said, the government is considering raising the foreign direct investment limit in defence sector at least to 49 percent from the existing 26 percent.

"I am in favour of raising FDI limit in the defence sector to at least 49 percent, if not 74 percent," Sharma told reporters on the sidelines of the annual general meeting of the Confederation of Indian Industry (CII) in New Delhi.

Sharma said the commerce and industry ministry has recommended raising the overseas investment limit in defence.

He said the inflow of FDI would help India become one of the major producers of defence equipments.

"FDI of 26 percent is definitely low. I recommended and will continue to strive for higher FDI in defence. There has to be a partnership between the government and industry," he said.

The minister also said that the government was committed to liberalise the FDI policy for other sectors, including banking and insurance.