<h1>Foreign direct investment cap in defence: proposal for majority foreign control to enable JV control and boost aerospace ecosystem.</h1> The report proposes allowing a minimum of majority foreign direct investment in the defence sector without conditional riders so international defence firms can exercise effective control over joint ventures, intellectual property and product quality. It contrasts this with the current policy permitting up to 49 per cent foreign equity under the automatic route and treating higher equity on a case-by-case basis tied to modern technology transfer, and links the proposal to capital inflows, job creation, R&D tax incentives, and development of the aerospace manufacturing ecosystem.