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Raise FDI limit in defence to attract investment: US to India

Date: 24-07-2012
Subject: Raise FDI limit in defence to attract investment: US to India
New Delhi: Seeking closer military ties with India in high technology areas by "knocking down bureaucratic barriers", the US today said that New Delhi should raise the FDI limit in defence sector for attracting more American investment.

Visiting US Deputy Defence Secretary Ashton Carter said the US was taking "real steps" to address India's concerns over American export control and technology denial regimes.

India, he said, was key to the US' strategy for re-balancing its force structure in the Asia Pacific region.

"Our partnership with India is a key part of our re-balance to the Asia-Pacific region, and, we believe, to the broader security and prosperity of the 21st century," he said addressing a function organised by CII here.

Making it clear that re-balancing is not aimed at any country, Carter said, "Our re-balance is not about China or the US or India or any other single country or group of countries.

"It is about a peaceful Asia-Pacific region, where sovereign states can enjoy the benefits of security and continue to prosper."

On the FDI issue in the defence sector, Carter said, "If India raises its FDI ceiling to international standards, it would increase commercial incentives to invest".

"At present, India allows only 26 per cent FDI in the sector whereas demands have been made by global firms to increase it upto 74 per cent.

On what he called stumbling blocks holding defence cooperation between the two countries, he said, "We want to knock down any remaining bureaucratic barriers in our defence relationship, and strip away the impediments. And we want to set big goals to achieve it."

With regard to re-balancing its military presence, Carter said the US' Asia-Pacific posture will increase relative to other theatres. 

Source : english.manoramaonline.com