<h1>India's Defence Sector Opens to 100% Private Participation, FDI Now Up to 49% Automatically; Boosts Innovation and Growth.</h1> The Defence Industry sector in India, previously reserved for the public sector, was opened to 100% Indian private sector participation in 2001, with Foreign Direct Investment (FDI) initially capped at 26%. FDI policy has since evolved, allowing up to 49% under the automatic route and beyond 49% through government approval for technology access. Since 2014, FDI inflows of over Rs. 1834 crores have been reported. The government has implemented various measures to boost the domestic defence industry, including revised procurement procedures, the introduction of the iDEX initiative, and the establishment of defence industrial corridors to foster innovation and indigenization.