According to the Chief Economic Advisor to the government, Raghuram Rajan, the government is proposing to increase Foreign Direct Investment (FDI) in some sectors including Defence. At present FDI in Defence is 26%. FDI was implemented in defence despite protest from the Employees’ Unions.

In a very strategic and security sector like Defence, increasing the FDI has to be strongly protested not only by the employees but by the political parties. The scams and corrupt practices in Defence sector is going to further increase if the FDI increases.