India’s Defense Budget Raises Foreign Ownership Limit
AIN DEFENSE PERSPECTIVE » JULY 11, 2014 by NEELAM MATHEWS India's Finance and Defense Minister, Arun Jaitley, delivered the country's defense budget on July 10. Overall it is bigger, but the air force allocation has shrunk. July 11, 2014, 7:25 AM Foreign companies can now own 49 percent of Indian defense companies, following a change announced as part of the country’s budget statement on July 10. The budget was presented by Finance and Defense Minister Arun Jaitley, a member of the newly elected government. It includes an allocation of $38.17 billion for defense, a gain of 12.44 percent. Some $15.76 billion of this (up from $13.15 billion last year) is capital expenditure, used primarily for procurement. The increase in foreign direct investment ( FDI ) prompted mixed reactions from the industry. “The budget is disappointing; 49 percent is unlikely to get significant flows, as industry partners in high-t...