Following clashes with Pakistan, India makes major decision to open defense sector for foreign investment, raising automatic route foreign investment limit in licensed arms companies from 49% to 74%. Previously, investment remained highly restricted; this move will pave the way for foreign arms companies to take majority stakes. According to the British news agency, the Indian government intends to significantly relax rules to promote foreign investment in the defense sector, increasing the automatic route foreign investment limit in existing licensed arms companies from 49% to 74%, while also considering removal of the ambiguous condition that tied investments above 74% to access to modern technology.
India’s big decision to open defense sector for foreign investment amid clashes with Pakistan
