FOREIGN DIRECT INVESTMENT IN THE INDIAN DEFENCE SECTOR

The blossoming Indian economy is fast pacing into the 21st century with the potential of being an economic superpower. An economic superpower must also be a military super power, in terms of military capability and strength. There should also be a dependable and reliable indigenous defence industrial base. A country which is self reliant and independent in its military requirements, and thus, also has access to technologically advanced capability can truly be termed as military superpower. The establishment of a well developed defence industrial base is of primary importance to any emerging super power. Focus should be on capability development followed by numeral growth, not the other way round. A clear understanding and identification of the requirements and needs of the armed forces and ensuring that the requirements are met within the stipulated time, in a cost effective manner, should be the primary goal of any defence industrial base and the determinant of its success. India is transitioning into a new era of military strength and capability. After the Dr Vijay Kelkar Committee recommendations, the Defence Industrial base in India is set for a metamorphosis. The private sector is being welcomed with open arms in the Defence production industry and the consequent concerns are being examined and an evaluation concerning the indent of Foreign Direct Investment in the defence sector is being widely