Antony opposes proposed hike in FDI in defence NEW DELHI: Defence minister AK Antony has opposed moves to raise the FDI in defence manufacturing from 26 per cent to 49 per cent, saying that it will affect growth of domestic industry, officials said Wednesday. Antony has written a letter to commerce minister Anand Sharma saying that his ministry was of the view that the FDI in defence manufacturing sector should stay at 26 per cent, they said. The defence minister, who has consistently pitched for growth of domestic defence industry, said that allowing foreign companies to set up manufacturing facilities will hamper growth of indigenous research and design development, they said. Sources said Antony also stated that the FDI cap should not be raised as the country cannot be dependent on foreign companies or policies of countries of their origin in defence sector on a long-term basis. However, he added that permission for the FDI beyond 26 per cent can be given on a case-to-case basis if it would lead to access to modern technology. He said such clearance can be given by the cabinet committee on security. The sources said a committee headed by economic affairs secretary Arvind Mayaram had recommended that the FDI limit be raised to 49 per cent in several sectors through automatic route. The committee had suggested that the FDI in defence be raised to 49 per cent under the government approval route from 26 per cent at present. Antony opposes proposed hike in FDI in defence - The Times of India ****************************************************** Anand Sharma is very keen to hobnob with foreigners who smell of cash. Money and not the Nation seems to spur him into an erotical frenzy. He was also one of those great advocates of colluding with Abu Dhabi over the Jet Etihad deal which would not bring FDI but ensure cash strapped Indian money flows into Abu Dhabi. It was the good old Subramanian Swamy who put the spanner in the works and gave Manmohan the cold feet! And now he is doing a somersault in ecstasy over the most lucrative realm of them all - defence!! Antony is correct in being cautious. Yes, FDI should be flexible, if only state of art technology comes into India and not say, producing Tatra like trucks! Such FDI should remain at the levels accepted so far!