Budget reaction from Atul Pandey, Associate Partner, Khaitan & Co.
Quote from Atul Pandey, Associate Partner
“In the budget, FM announced that the FIPB may be abolished. Since in the defence sector any FDI beyond 49% requires government approval, it appears that either this sector will be further liberalised by allowing 100% FDI in the automatic route or the nodal ministry (ie MOD) will process and decide any application for approval of an FDI in excess of 49%. We need to wait for the roadmap ahead”.