According to the recommendations of the report that was present in the parliament on Thursday on 'Indigenisation of Defence Production-Public Private Partnership', the allocation limit of FDI i. e. 26% may increase on a case to case basis. While the committee headed by Satpal Maharaj have shown intentions of getting the FDI limit increased, the Government is still not keen on the same, keeping the strategic importance of the Defence sector to the country in mind.

On one end, the increased limit in the Defence sector will surely bring more foreign investment into Indian, but on the other the government is weighing it with the issue of national interest which according to many should be at the top of the list when it comes to the defence-related matters.

The committee believes that the government should examine the possibilities of increasing the limit to almost 49% which will be beneficial from the monetary point of view.

Currently Indian companies like Mahindra and Mahindra, the Tatas and Samtel are contributing towards the development of the defence sector. The defence ministry believes that any increase beyond the 50% level may prove costly at some critical junctures.