‘Defence Sector In India – Regulatory Landscape, Recent Developments And Their Impact'

Introduction

Regulation of the Defence sector in India has seen immense movement in the last few years. The main objective of the Government has been to spur foreign investment in the sector and promote partnerships between Indian private sector entities and international original equipment manufacturers, with a view to augment domestic production of state of the art technologies, thereby realising the 'Make in India' initiative and reducing India's dependence on imports.

However, given the sensitivities and national security concerns surrounding the sector, investment in Defence remains highly regulated. The following paragraphs briefly analyse the current regulatory framework governing the sector, certain ambiguities that emerge from the recent changes brought about by the Government and their impact on foreign investment in the sector.