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
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