Review of Foreign Direct Investment (FDI) Policy in Defence Sector

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....ion 5.2.6 Defence Sector/Activity % of Equity/ FDI Cap Entry Route 5.2.6.1 Defence Industry subject to Industrial license under the Industries (Development & Regulation) Act, 1951 and Manufacturing of small arms and ammunition under the Arms Act, 1959 100% Automatic up to 49% Government route beyond 49% wherever it is likely to result in access to modern technology or for other reasons to....

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....with manufacturing facility, should also have maintenance and life cycle support facility of the product being manufactured in India. 2. Revised Position The Government of India has reviewed the extant FDI policy in Defence sector and the policy will now be read as under: 5.2.6 Defence Sector/Activity % of Equity/ FDI Cap Entry Route 5.2.6.1 Defence Industry subject to Industrial license u....

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....ys of such change. Proposals for raising FDI beyond 49% from such companies will require Government approval. iii. Licence applications will be considered by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, in consultation with Ministry of Defence and Ministry of External Affairs. iv. Foreign investment in the sector is subject to security clearance....