<div>India should allow more foreign direct investment in defence production in order to speed up deliveries of hardware it badly needs for training and military operations, a senior air force officer said on 6 November' 2013.</div><div> </div><div>The world's biggest arms importer wants to reduce dependence on overseas suppliers and develop the domestic defence industry, but state-run manufacturers' track record is patchy and the government wants private Indian firms to have a greater say.</div><div> </div><div>But some air force officials also want to attract more foreign companies, and believe that a 26 percent cap on foreign direct investment (FDI) in defence production is putting potential partners off.</div><div> </div><div>"Now we have allowed 26 percent FDI in the defence sector. I do not think it is attractive for foreign industry," the Times Now TV channel quoted Indian Air Force's director general for flight safety, Air Marshal P.P. Reddy, as saying.</div><div> </div><div>"Why do we restrict FDI? We need to ponder over it."</div><div> </div><div>In July, India said a cabinet panel would consider proposals for foreign investment in defence above 26 percent, but only if it involved state-of-the-art technology.</div><div> </div><div>India wants to upgrade an outdated weapons systems to keep up with neighbours China and Pakistan in a Rs 6,23,400 Crores modernisation drive, but some of its biggest projects have been dogged by delays often blamed on corruption and bureaucracy.</div><div> </div><div>A Rs 75,270 Crores deal to buy 126 Rafale fighter jets from France's Dassault Aviation has been held up by differences over the role of a local manufacturer, state-run Hindustan Aeronautics Ltd (HAL).</div><div> </div><div>HAL, India's main aeronautics supplier, has been developing a light combat aircraft since the early 1980s with little success.</div><div> </div><div>And almost a decade after the maiden flight of its first prototype, the same company is struggling with its Intermediate Jet Trainer (IJT) project, according to local media.</div><div> </div><div>"Yes, there have been delays. IJT is delayed," Reddy said. "We desperately need these airplanes. The programme is delayed and therefore it is going to put the Air Force in a fine bind as to how we will continue our training."<br /><br />(Reuters)</div>
_20240915134155_original_image_47.webp)
