Foreign Investment in Defence Sector
Press Note No. 7 (2014 Series) Government of India (GOI) has reviewed the policy on Foreign Direct Investment to liberalise the norms of FDI in Defence Sector. Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com As per FDI Policy of 2014 (“FDI Policy”), issued on April 17th, 2014, by the Department of Industrial Policy and Promotion (“DIPP”), FDI in Defence sectors is permitted upto 26% under Government Route and any proposals for FDI beyond 26% can be made to Cabinet Committee on Security (CCS). The GOI has reviewed the FDI Policy vide Press Note No. 7 (2014 Series) and has amended Paras 4.1.3 (v) (d) and 6.2.6 of the FDI Policy to permit FDI upto 49% under Government Route. Proposals for FDI beyond 49% shall be considered by CCS on case to case basis, wherever it is likely to result in access to modern and state-of-art technology in the country.