FDI in defense...

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A statement released by A.K.Antony,the defense minister of India has hinted that his ministry was open to allowing more Foreign Direct Investments in defense production. Acc. to defense offset facilitation agency ,the country is poised to buy military equipment estimated at Rs 4,300billion,over the next five years during 11th five year planning period. As per the offset clause ,for every purchase order,the foreign vendor has to invest about 30% of the order value for co-production or purchase agreement with Indian defense producers. Referring to the 30% offset clause,made mandatory for every defense contract or purchase valued at 3 billion or more,Antony said ,since India was going to procure a lot of defense equipment,in the coming years ,spending billions of rupees, the PSU and private firms should capitalize on the opportunity for increasing their share of the pie...