The plan by India’s new government to open the sectors was originally announced by the country’s new finance minister, Arun Jaitley, in the national budget last month. The cabinet approval is all the proposal needed to become policy.
India is world’s largest importer of military equipment as it needs to arm one of the largest military forces in the world. The higher investment cap will help it attract the investment it needs, save on foreign currency and encourage technology transfer.
India’s defense industry has attracted only $4.1 million in foreign direct investment since it was first opened to foreign participation in 2001, according to government data.
In the railway industry, more foreign capital and technology is needed for it to build high-speed trains, more commuter lines in cities and railroads connecting mines to ports.
Skeptic of this ??