NEW DELHI, July 10. /ITAR-TASS/. Indian government has ruled to allow foreign companies to hold up to 49% stake in defense companies India, the country’s Minister of finance and defense Arun Jaitley said while presenting the budget for the current fiscal year.

The budget also stipulates a 15% increase in defense spending to 2.29 trillion rupees ($38 billion). An additional 50 billion rupees, or $833 million, will be allocated for armed forces modernization. The budget for 2013-2014 fiscal year stipulated defence spending of 2 trillion rupees ($37 billion).

Indian fiscal year starts on April 1 and ends on March 31.