Reacting to the Budget proposals on defence and automotive industry, Chairman & MD of Bharat Forge ltd Baba N Kalyani said: "From a Policy perspective, the decision to raise FDI in the Defence sector from 26 per cent to 49 per cent through the FIPB route with management control in Indian hands will provide a boost to domestic manufacturing industry.
"The Finance Minister's statement of wanting to reduce reliance on imports coupled with his intent to streamline defence procurement systems is very positive. We are confident that Indian manufacturing industry would now be able to play a more effective role in indigenization in this critical sector of the national economy," Kalyani added. As regards the automotive industry, he further added, Government last month announced its decision to extend the excise duty concessions.