India May Open Defence Sector Wider to Foreign Investors
What Happened
The government is considering easing FDI norms in the defence sector and has begun stakeholder consultations. Currently, foreign investors can own up to 74% through the automatic route, while higher stakes require government approval and security clearances.
Key Takeaways
Relaxed rules could attract more global defence companies, boosting technology transfer, domestic manufacturing and exports as India targets ₹3 lakh crore in defence production and ₹50,000 crore in exports by 2029.