Introduction
On 16 May 2020, the government had announced raising the Foreign
Direct Investment (FDI) limit in defence manufacturing, under the
automatic route, from 49% to 74%.
Subsequent to the announcement, on 17 September 2020, the
Department for Promotion of Industry and Internal Trade (DPIIT) has
issued Press Note 4 (2020 Series) (PN 4 of 2020) to give effect to
the government's decision to raise FDI in the defence sector to
74% under automatic route.
Details of changes introduced
Current Position
|
Revised Position
|
FDI limit (100%)
|
|
•FDI up to 49% is permitted under the automatic route in an
industry requiring industrial license1.
•FDI beyond 49% is permitted under the government route in
an industry requiring industrial license, wherever it was likely to
result in access to modern technology or for other reasons to be
recorded. |
