India's first aerospace joint venture

Author: Brian Yap | Published: 11 Jan 2016

India has welcomed its first aerospace joint venture (JV) under a revised foreign direct investment (FDI) policy, as the country celebrates 25 years of economic liberalisation.

Hyderabad-based Tata Advanced Systems became the first Indian corporate to have set up a JV with Boeing on November 23 of last year. The deal has been a litmus test of the Modi government’s resolve to deregulate the world’s seventh largest economy, with inward FDI caps having been adjusted from 26% to 49% in 2014.

As one of the world’s biggest importers of arms, with a total expenditure of $4.24 billion recorded by the World Bank in 2014, India has traditionally imposed...