FDI cap in defence licensing allows limited foreign equity and requires licensing, Indian management and security controls. Guidelines require licences from the Department of Industrial Policy & Promotion, in consultation with the Ministry of Defence, for private production of arms and ammunition permitting private participation and FDI up to 26%. Applicants must be Indian entities with Indian management and majority board control; foreign collaborators and promoters are subject to government vetting. Licences set capacity norms, allow import of pre production equipment, mandate safety, security and quality assurance with inspection by a nominated agency, and impose a three year lock in on transfers of foreign equity. Production is primarily for defence and restricted for domestic sale and export.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
FDI cap in defence licensing allows limited foreign equity and requires licensing, Indian management and security controls.
Guidelines require licences from the Department of Industrial Policy & Promotion, in consultation with the Ministry of Defence, for private production of arms and ammunition permitting private participation and FDI up to 26%. Applicants must be Indian entities with Indian management and majority board control; foreign collaborators and promoters are subject to government vetting. Licences set capacity norms, allow import of pre production equipment, mandate safety, security and quality assurance with inspection by a nominated agency, and impose a three year lock in on transfers of foreign equity. Production is primarily for defence and restricted for domestic sale and export.
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