Government seeks to permit 74% investment in defense sector through automatic route

Department for Promotion of Industry and Internal Trade vide Press Note No. 4 of 2020 released on 17.09.2020 has reviewed the Foreign Direct Investment (FDI) Policy in Defense Sector. As of now 100% FDI is permitted in the defense sector and 49% investment can be made through automatic route. The government seeks to allow 74% investment through automatic route in the defense sector. This shall come into force once the FEMA notification is published.

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