“Raising the FDI cap in defence to 49 per cent is a step in the right direction and we welcome it. However, we remain of the opinion that enhancing the cap further, i.e. allowing foreign OEMs to form joint ventures with local partners wherein the former have the management control, will help India attract even more cutting-edge technologies and valuable intellectual property in defence from abroad. Certain checks and controls can be built into such a policy so that India’s strategic interests remain fully safeguarded. This approach will best serve India’s defence indigenisation objectives and accelerate its emergence as a global production hub for defence equipment.”