DEA to pitch for FIIs in defence production sector

The department of economic affairs (DEA) is going to strongly pitch for allowing foreign institutional investors (FIIs) into the defence production sector, after the investment route was banned for institutional investors in August 2013. 

According to soucres that DEA secretary Arvind Mayaram is likely to make a presentation to defence minister, A K Antony on the issue. 

Also read: FIIs look for sustained reforms in India: Survey 

The industry department also supports the stand taken by DEA as it believes that FII investment up to 24% can be allowed in defence production.

As per the current foreign direct investment (FDI) policy, up to 26 % FDI is allowed in defence production through the FIPB route, and above 26%, the cabinet committee on security will take a call on a case to case basis. The final call on allowing FII in the defence sector will be taken by Antony.