Foreign direct investment in Indian defence sector stands at just $133,000

Figures released by the Indian government have revealed that foreign direct investment (FDI) in domestic defence companies totals just INR6.86 million (USD133,000).

A notice published in February by the Indian Ministry of Commerce and Industry's Department of Industrial Policy and Promotion (DIPP) showed that investment in Indian sectors outside defence remains strong despite the global economic downturn.

FDI in Indian companies in 62 sectors, it said, grew 90 per cent between January and November 2008 from USD8.7 million to USD16.5 million. It added that total FDI in all sectors - from August 1991 until November 2008 - had reached USD80 billion.

The notice then goes on to calculate the total FDI in all industry sectors since 1991.

While the Indian service sector tops this league table with a total of USD13.6 million made through FDI, the defence sector is by far the lowest of all 62 industries.

The figures, however, do not include investment funds committed by BAE Systems in its creation of a joint venture with private Indian company Mahindra & Mahindra.