India opens defence sector to 100% FDI
On 20 June India announced radical reforms in numerous industries, including aviation and defence, by allowing 100% foreign direct investment (FDI) with immediate effect.
Present rules permit 49% FDI participation in company equity under the automatic route. While most sectors are to be cleared under this avenue, except for a small negative list, clearances for the sensitive defence sector will continue on a case-by-case basis, though less stringent than in the past.
‘With these changes, India is now the most open economy in the world for FDI,’ said a statement.
‘Subject to validation and fine print of the release of
Already have an account? Log in
Want to keep reading this article?
More from Defence Notes
-
![Is the US magazine of air defence interceptors deep enough to sustain a long campaign against Iran?]()
Is the US magazine of air defence interceptors deep enough to sustain a long campaign against Iran?
The Pentagon spent a considerable number of THAAD and SM-3 rounds to defend against Iranian missiles in 2025 and has not fully replenished its reserves.
-
![New Zealand buys tri-service uncrewed kit from Syos Aerospace]()
New Zealand buys tri-service uncrewed kit from Syos Aerospace
As uncrewed technology continues to play an increasingly central role in modern military activities, New Zealand’s recent acquisitions point towards its the force’s focus on cost-effective capability.
-
![US Air Force pushes Sentinel’s initial capability to early 2030s despite China’s nuclear progress]()
US Air Force pushes Sentinel’s initial capability to early 2030s despite China’s nuclear progress
While the US struggles to modernise the 50-year-old land leg of its nuclear triad, China has been rapidly developing and fielding new nuclear capabilities.
