Hyderabad, September 24, 2005 (Business Line)

The Centre is keen on private sector participation in the defence sector, allowing 26 per cent foreign direct investment (FDI), while inviting 100 per cent domestic sector participation.

The restricted FDI will be with certain checks and balances, the Defence Minister, Pranab Mukherjee, said here on Friday.

Speaking at the 32nd national convention of the All India Management Association (AIMA), Mukherjee said seven companies had filed a letter of intent (LoI) in areas relating to defence manufacturing. While L&T and Tatas were among them, Tatas had evinced interest in participating in the missile technology arena.

"The Indian foreign trade regime has been fully liberalised and most goods that a consumer wants are now available in the country. Given the GDP growth rate of 6-7 per cent per annum, this offers immense scope for investments in many sectors in the country," he said.

"India as a nation is best among best. Reforms initiated have begun to yield results. Its strength lies in a large trained manpower that is making a difference in several sectors in the country. However, we hope that the Indian industry does not merely focus on enhancing the export earning but reaches out the benefits of globalisation to all parts of the country," he said.Earlier, B. Ramalinga Raju, Chairman of Satyam Computer Services Ltd, Dr K. Anji Reddy, Chairman of Dr. Reddy's Laboratories and Arun Maira, Chairman of The Boston Consulting Group India, were conferred awards by the AIMA for exemplary contributions.

The Director-General of AIMA, Maj. Gen D.N. Khurana, said the theme of the two-day convention was "The Best of the Best: Spirit of the Challenge", and AIMA was working as a change agent in the country.

The President of AIMA, Sunil Alagh, said "it is important that in a large country like ours the Government and the private sector function as a team and carry people along with them. We need role models for the younger generation to emulate."

The Satyam Chairman narrated his experiences with Bill Gates of Microsoft Corporation, Jack Welch, former GE Chairman, and Michael Dell of Dell Computers, to illustrate their keenness to learn from others, even though they represented three of the largest multinational giants.