<h1>India Opens Defence Industry to Private Sector with FDI Up to 49% via Automatic Route; Licensing Required.</h1> In May 2001, India's Defence Industry sector, previously reserved for the public sector, was opened to 100% Indian private sector participation, with Foreign Direct Investment (FDI) permitted up to 26%, both requiring licensing. A 2016 policy allowed FDI up to 49% via the automatic route and above 49% through government approval if it leads to modern technology access. FDI in this sector requires an industrial license and compliance with relevant acts. Since 2014, over Rs. 1561 Crores in FDI have been reported in the defence and aerospace sector through the automatic route, as stated in a government report.