Maximum expenditure of the government goes to defending the country. Lakhs of crore rupees are spent on purchasing defence equipment from US, Israel and other countries. Not much publicity is not given to these deals, since they are connected with defence. Any government in the world will like defence equipment manufactured in their own countries due to the security concern. The position of India can not be otherwise.
But what is happening in India is curious. Defence equipment were being manufactured in the Defence Factories. These are being reduced. MNCs are private companies are allowed to produce them in the Special Economic Zones where many labour and tax conditions are waived or reduced. But now the government is going much more in support of the private capital to maximise their profit. It is proposing to increase the FDI in this sector which at present is 26%. While the Arvind Mayaram Committee which looked in the matter has recommended increase to 49%, the Commerce Minister Anand Sharma is battling for more, at least to 74%. A lobby in the government is trying to make it 100%.
IN the present situation when increasing the FDI in every sector is one of the most important policy of the government to please the imperialist countries headed by US and the MNCs, anything can happen! FDI seems to be more important than defence and security of the country.