Defence

• Raised FDI in defence manufacturing from 26 per cent to 49 per cent. FullIndian management control retained through FIPB route

• Raised budget outlay for defence to Rs 2,29,000 crore (defence allocationin the interim budget was Rs 2,24,000 crore)

• Increased capital outlay by Rs 5000 crore over the interim budget,including Rs 1000 crore outlay for railway systems in border areas

• Allocated Rs 100 crore to set up a technology development fund tosupport research and development of defence systems by public andprivate sector companies, including SMEs

Union Budget 2014-15 Increases Foreign Direct Investment (FDI) andCapital Outlays to Modernise the Armed Forces