Raksha Mantri informed Rajya Sabha about the Relaxation of Foreign Direct Investment (FDI) norms in Defence Sector.
In 2001, the Defence Industry sector, which was hitherto reserved for the public sector, was opened upto 100% for Indian private sector participation, with FDI upto 26% both subject to licensing.
Further, Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry has allowed FDI under automatic route upto 49% and above 49% through government route wherever it is likely to result in access to modern technology.
Further, FDI in defence industry sector is subject to industrial license under Industries (Development & Regulation) Act, 1951 and manufacturing of small arms and ammunition under the Arms Act, 1959.
Source : PIB