The new policy raising the cap of foreign direct investment through automatic approval in the defence sector from 49 per cent to 74 per cent now has a ‘National Security’ clause as a condition. The policy was approved by the Union Cabinet on Tuesday. According to sources, the new condition has been proposed by the Ministry of Commerce and Industry.
“Foreign investment in the Defence Sector shall be subject to scrutiny on ground of National Security and the Government reserves the right to review any foreign investment in the Defence…