Union Minister of State in the Prime Minister's Office V. Narayanasamy on Wednesday backed the government's decision to allow 100 per cent foreign direct investment (FDI) in the telecom sector and 49 per cent in the retail sector, and a case-by-case assessment of increasing the FDI component in the defence sector, saying that it would propel the country's progress forward.
"India's exports could not make it to other countries, even though production is there. Because (of) the crisis we are facing in the global economy (which) is in the doldrums, that is why the Honorable Prime Minister has taken the initiative to bring more foreign direct investment into our country", Narayanasamy said.
At a meeting with senior cabinet ministers, Prime Minister Manmohan Singh decided there was a need to allow 100 per cent FDI in the telecom sector, 49 per cent in the retail sector, and 26 per cent in the defense sector.
Commenting on the apprehension surrounding the introduction of FDI in the defence sector, Narayanasamy said the Prime Minister has been extremely cautious while dealing with the matter.
"State of the art technology has been identified. They are taking it step-by-step and very slowly. The Prime Minister has decided to keep defence at only 26 per cent," he said.
Narayanasamy also said that a proposal to allow FDI in the insurance sector has been submitted, and he remained optimistic about the decision.
"Now, huge investments will come. The country will move forward," he said. (ANI)