Airbus Group India plans to invest ₹5,000 crore in the country. However, the European conglomerate has expressed serious concerns over the country’s Foreign Direct Investment (FDI) policy that pegs foreign equity under the automatic route at 49 percent.
“We have a planned investment worth Rs 5,000 crore and the potential to create 10,000 highly skilled blue-collared jobs,” Pierre de Bausset, President and Managing Director of Airbus Group India, said during a press conference in New Delhi on Monday.
On the FDI policy in defence sector — it stipulates that 100 per cent FDI can be allowed under the government route provided the foreign entity is bringing into the country state-of-art technology — he said, “The policy is at odds and it is very set at 49 per cent. It is not going to get an industry and it is not going to get OEMs of quality. You may get a few but not the right ones.”
“It has to be a win-win partnership. If we are bringing investments, technology and products on the table then we need more control. So honestly, the 49 per cent limit is not a good limit … I want fair business. Fair business means that we need to have levels of control that are appropriate for the risks that we are taking,” Bausset said.