Western governments are rushing to visit Prime Minister Narendra Modi, drawn by the prospect of multi-billion-dollar deals as the Indian government prepares to open the nascent defence industry to foreign investment.
Senior politicians from France, the United States and Britain arrive in quick succession over the next 10 days as Prime Minister Modi prepares to accelerate the modernisation of the country's mostly Soviet-era weaponry.
First to arrive in New Delhi will be French Foreign Minister Laurent Fabius, who arrives on Monday, will meet PM Modi as well as Defence Minister Arun Jaitley who also holds the finance portfolio - and can therefore decide both whether to sign the deal and when to release the money.
Russia, for years India's top weapons supplier, pipped all three countries to the post, sending Deputy Prime Minister Dmitry Rogozin to visit the new government in Delhi two weeks ago. Washington last year replaced Moscow as India's top defence supplier, according to IHS Jane's.
India spent some $6 billion (approximately Rs 36,000 crore) last year on weapons imports. It makes few of its own weapons, beyond ballistic missiles and assembly lines for foreign jets.
On Thursday, the government signalled it was in the mood for liberalisation by allowing manufacturers to build more defence components without licences, making it easier for domestic firms to partner foreigners.
At present, foreign companies can only invest 26 per cent in Indian defence projects without committing to technology transfer, which has put off many investors.
Lockheed Martin already has a 26 per cent investment in an Indian joint venture with Tata Advanced Systems that manufactures airframe components for the C-130J Super Hercules cargo lifter.
The note suggested allowing 100 per cent FDI in manufacturing of state-of-the art equipment, one of the officials said. It also recommends a cap of 49 per cent for investments which do not involve transfer technology and a 74 per cent ceiling in such cases where the foreign investor is ready to share technology know-how, the official added.
Senior politicians from France, the United States and Britain arrive in quick succession over the next 10 days as Prime Minister Modi prepares to accelerate the modernisation of the country's mostly Soviet-era weaponry.
First to arrive in New Delhi will be French Foreign Minister Laurent Fabius, who arrives on Monday, will meet PM Modi as well as Defence Minister Arun Jaitley who also holds the finance portfolio - and can therefore decide both whether to sign the deal and when to release the money.
Russia, for years India's top weapons supplier, pipped all three countries to the post, sending Deputy Prime Minister Dmitry Rogozin to visit the new government in Delhi two weeks ago. Washington last year replaced Moscow as India's top defence supplier, according to IHS Jane's.
India spent some $6 billion (approximately Rs 36,000 crore) last year on weapons imports. It makes few of its own weapons, beyond ballistic missiles and assembly lines for foreign jets.
On Thursday, the government signalled it was in the mood for liberalisation by allowing manufacturers to build more defence components without licences, making it easier for domestic firms to partner foreigners.
At present, foreign companies can only invest 26 per cent in Indian defence projects without committing to technology transfer, which has put off many investors.
Lockheed Martin already has a 26 per cent investment in an Indian joint venture with Tata Advanced Systems that manufactures airframe components for the C-130J Super Hercules cargo lifter.
The note suggested allowing 100 per cent FDI in manufacturing of state-of-the art equipment, one of the officials said. It also recommends a cap of 49 per cent for investments which do not involve transfer technology and a 74 per cent ceiling in such cases where the foreign investor is ready to share technology know-how, the official added.
