June 1, 2017 4:28 PM

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Strategic partnership policy in defence to help attract FDI: Jaitley

Defence Minister Arun Jaitley today said the strategic partnership policy in defence will help attract FDI as global investors would be assured of orders.<br/><br/>Talking to media in New Delhi, Mr Jaitley said unless the opening of the FDI rules is accompanied by some reasonable possibility of getting orders, an investor is not going to set up an establishment in the country.<br/><br/>He said entry of foreign investors is linked to the kind of orders they will get and the only entity which can place the orders is the government. Replying to a query about the reasons of poor response of investors in the sector, Mr Jaitley said there is only one procurer and that is why the strategic partner policy has now been brought in as it will supplement the FDI policy.<br/><br/>Our correspondent reports that the strategic partnership model aims to create a vibrant defence manufacturing ecosystem in the country through involvement of both the major Indian corporates as well as the MSME sector.<br/><br/>Talking about the procurement proposals, Mr Jaitley said, under the Defence Procurement Policy, a particular mechanism is there by which decisions are being taken. He added that the manner in which the proposals have been cleared by the defence acquisition council over the last three years is unprecedented as compared with the inaction during the UPA regime.

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